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1. It is sometimes suggested that the government should actively pursue an industrial policy. Explain what this means and discuss the advantages and the disadvantages of such a policy. 2. Suggest four policies to promote growth. Be precise and provide details. For each policy suggested, indicate (a) How is it related to the Solow model we learned in class. (b) Whether it will lead to sustained higher growth or just temporarily higher growth.
What is the numerical value of the partial derivative of the function with respect to advertising spending (be sure to also include the + or – sign, but I do not want the symbol for this)? The amount budgeted for advertising spending is cut by $100,0..
Suppose that, initially, the Michigan economy is in equilibrium with no unemployment. The supply of workers is ES = -1,000,000 + 200w, and the demand for workers is ED = 19,000,000 – 300w, where w = annual wages, and E = number of employed workers. T..
What is the economic rationale for the countries of Europe to enter into a customs union, later to be strengthened by the Single Market Act and the Maastricht Treaty?
A new Taurus bought in 1994 cost $18,680 and it could have been sold as used in 1995 for $12,600.
The computer industry not spread more evenly around the globe? Identify three product categories for which you think the markets are global. Can you find three that are multi domestic? What market data would you need to support your assertion?
In the classical theory of labor supply it was believed that the individual attempts to maximize what factor? He will attempt to reach a point of trade-off between what two factors? What two “effects” come into play in reaching this trade-off?
Recently, there has been a spate of instability throughout the world. The immigration crisis in the EU, and the political instability in parts of the Middle East. Explain intuitively why the NCO curve slopes downward. Begin your explanation, by consi..
Assume for this CheckPoint that purchasing a new home is a major decision requiring a substantial financial outlay where the wrong decision has long-term financial consequences.
botco, inc. is constructing remote-controlled cars to sell to hobbyists. After doing some analysis, botco's chief economist reported that, at the current level of output per month, the marginal benefit for making remote-controlled cars exceeds the ma..
Economists use the term capital to describe that factor of production that includes human-made resources such as factories, buildings, machinery and tools. A change in the price of hamburgers will shift the supply curve for hot dogs. If the price of ..
After reviewing efforts to reduce the Deficit, discuss the actions in use by Congress since 1985 to reduce the budget deficits.
In this table below, Agoira moves from a command system to a market system
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