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1. How is government debt related to the government deficit? What factors contribute to a large change in the debt-GDP ratio?
2. Why do economists suggest that tax rates be kept roughly constant over time, rather than alternating between high and low levels?
3. Discuss four reasons why the Ricardian equivalence proposition isn’t likely to hold exactly.
q1. suppose that mnl logs harvested the logs in october 2011 and sold them to mnl number in december 2011. mnl number
Will these monopolies typically earn economic profits. Why do not other airlines enter these monopoly routes.
The manager of a Burger Doodle franchise wants to determine how many sausage biscuits and ham biscuits to prepare each morning for breakfast customers. The two types of biscuits require the following resources: Formulate a linear programming model fo..
The bank is paying 10.13% compounded annually. The inflation is expected to be 11.77% per year. What is the market interest rate?
Suppose that an individual maximizes u(x,y)=x1^a x2^b (α, β > 0) subject to the budget constraint p1x1 + p2x2 = y. Solve for x1 and x2 (the optimal values of x1 and x2, which are the demands for x1 and x2) Are x1 and x2 , normal or inferior? Does dem..
For the production function q= k^0.25 l^0.25. Find total cost function C(w,r;q). Show that it is homogeneous of degree one in input prices and explain the intuition behind this property. Find the profit function?(w,r,p). Show that it is homogeneous o..
Why do most countries use trade protection tools? Is there any theoretical justification to use trade protection tools? Explain why rich countries subsidize agricultural sector in their economies. Explain why rich countries subsidize high-tech firms ..
Suppose that consumption expenditures, investment expenditures, and government purchases are 75 billion, 25 billion and 20 billion, respectively. How large should the GDP be so that the net export is zero?
Set up a Ricardo-type comparative advantage numerical example with two countries and two goods. Distinguish “absolute advantage” from “comparative advantage” in the context of your example. Then select an international terms-or-trade ratio and explai..
What are the benefits and drawbacks of having a health program that varies by state versus having one that is uniform across the country? Do you find that the positives of state flexibility outweigh the negative or vice versa? Is it fair that similar..
A perfectly competitive external market for the intermediate product exists, and an imperfectly competitive external market for the intermediate product exists.
Consider a monopolist with demand curve P= 100-Q/2 . The total cost of production is 10Q + 1500 for positive ouput and 500 if it shuts down production. Illustrate what is the maximum profit the monopolist can earn (assuming no possibility of price..
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