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True or False
1. GPI is a highly objective alternative to GDP.
2. The main flaw with GDP is that it only includes final goods and services not primary and intermediate good production.
3. Net Domestic Product is GDP after taxes.
4. Over time, the U.S. economy seems to grow about 2% per year.
Suppose the economy is initially in equilibrium at an output level of 100 and price level of 100. The fed then manages to shift aggregate demand rightward by 20.
Describe how the economic theories and principles you have studied in this course have deepened your thinking about economic behavior.
As the value of the Gini coefficient approaches one, The Gini coefficient is measured by
What is the “ethic of giftedness”? What values does Sandel argue are realized in embracing this ethic? How would Sandel view uses of technological enhancement that are generally accepted (prosthetics, eyeglasses, etc…)?
If the current price of capital is $10 and the current price of labor is $25, is the firm employing the optimal input bundle for its current output?
A large bank has assets that include $100 million in vault cash and $1 billion on deposit at the Federal Reserve Bank. Its liabilities include $1 billion ($109) in checkable deposits. What are the excess reserves, if any?
If the price above the equilibrium level, would you predict excess supply or excess demand? If the price is below the equilibrium level, would you predict a shortage or a surplus? Why?
q1. consider a monopsony employer in a labour market. elucidate explain how a union in this labour market might
A company offers $2.5 million for the rights to a patent. If the patent can bring in $500,000 in royalties over the next six years, should the offer be taken? Assume an interest rate of 6% per year.
If the nominal interest rate is 4 percent and expected inflation is 1 percent, what is the real interest rate? Suppose instead that the nominal interest rate is 80 percent and the expected inflation rate is 40 percent.
Consider the demand for mobile phones. Suppose the price elasticity of demand for the market as a whole is .80. A. If all mobile-phone companies simultaneously increased their prices, will total revenue in the industry increase of decrease.
Structuring problems of risk in mining and transporation
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