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A higher steady-state capital stock has both a positive and negative effect on consumption per worker in the Solow growth model (assume no population or technological growth). Why?
Suppose that you are trying to determine the after effects of hurricane Katrina on the economy of Louisiana. Which assumptions could be made to simplify the study? Consider the effects on all of Louisiana’s interstate trade partners. Determine the ef..
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For at least 25 years following 1981, the Chinese government followed a policy that kept its currency weak and the U.S. dollar strong. Explain how this policy hurts Chinese consumers. Why does the Chinese government continue to support a strong dolla..
The Japanese car makers [Toyota, Honda and others] have almost eliminated the 'lemon' in new car markets. This is an example of positive adverse selection. Explain with examples how and when positive adverse selection can arise.
Which of the following types of economic regulation is most likely to encourage firms to engage in cost cutting? In monopolistic competition, firms compete on the basis of. Which of the following statements is FALSE concerning monopolistic competiti..
Is it possible for the short-run run market supply curve to show that quantity supplied increases only if price increases and for the long-run market supply curve to indicate that market price does not increase as quantity supplied increases? Why or ..
q1. using the formula for beta1 and beta0 show what will happen to the estimator of the slope and intercept in the slr
Do you vote? Why or why not? What does the probability of decisiveness suggest you should do? What are the inefficiencies (social waste) associated with government granted monopolies?
To maximize profit, should the firm lower its price, increase its price, or leave the price unchanged? How would you change your response if marginal revenue is $1.50? Explain your responses.
Two individuals, Andy and Beth, work on a joint project. If Andy chooses effort level x ≥ 0 and Beth chooses effort level y ≥ 0, then the total output equals 10x+10y+2xy. Maximize each player’s payoff function to find his or her best response functi..
Breaking news reports claim that household incomes are strong and growing. Assuming all other applicable indicators remain the same, how would you expect this to impact the position of the Demand Curve in the Product Market? You read an article that ..
Analyze the following economy (two goods,two periods,two representative consumers with endowments).. Xavier has Cobb-Douglas preferences over consumption today (A1 for apples today) and tomorrow (A2) of the form UX=.51 log(A1 ) + .49 log(A2 ). He beg..
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