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Suppose the US can produce a bushel of wheat in 1 hour and a CD player in 10 hours . Thailand can produce a bushel of wheat in 12 hours and a cd player in 2 hours. According to the law of comparative advantage , who should produce wheat and who should produce Cd palyer? Compute all relevant opportunity cost.
What were some of causes of stagflation of 1973 and 1979? In what ways were these episodes of stagflation different from great depression of the 1930s?
Problem on standard deviation
Explain how advertising can be employed to allow Tots-R-Us to keep price average above cost without encouraging entry.
Essay on Market imperfection associated with negative externalities
Engineers at national research laboratory built a prototype automobile which could be driven 180 miles on single gallon of unleaded gasoline. They estimated that in the mass production the care would cost 40k for each unit to build.
Application of Nash Equilibrium and Game Theory with examples
Identify trends or other patterns in inflation within the an economy of your choice over the last five years using quarterly data from the Central Bank or other Government based Statistical agency websites as a source.
How income may change savings behavior
The rising stock market implies an increase in wealth, at least as measured on paper. If we assume that some of this increased wealth gets consumed, then the rising stock market fuels an increase in aggregate demand, and may contribute to an inflatio..
Describe the present economic crisis situation in Europe. Why has it been so difficult for the Europeans to find a solution to this problem? Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..
Find the optimal (profit maximizing or cost minimizing) output of each firm. Find the price that each firm charges at the when producing the optimal output.
In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?
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