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1. How does each of the following factors affect the IS curve? Start your argument from the diagram of Id-Sd and show how the associated change will affect IS curve.
a. An increase in government purchases (when it does not affect the productivity).
b. An increase in taxes (when Ricardian equivalence does not hold).
c. An increase in national income.
d. An increase in marginal productivity of capital.
Can you think of reasons why a monopoly might decide on their own to increase production and lower prices to earn an acceptable profit rather than maximize profits?
Kate's Katering offers catered meals, and catered meals industry is perfectly competitive. Kate equipment costs $100 per day and is the only fixed input.
An article in BusinessWeek warned of the dangers of deflation as the collapse of numerous Asian economies was creating worries that Asia might try to "export its way out of trouble" by oversupplying everything from automobiles to semiconductors.
Which of the following will have positive signs and which will have negative ones:
Warren Buffett has been a very successful investor. In 2008, Luisa Kroll reported that Buffett topped Forbes Magazine's list of the world's richest people with a fortune estimated to be worth $62 billion (March 5, 2008, The world's billionaires, For..
Engineering economies tools to show its effect in decision making. Compare between them using engineering economics tools that been covered in the class (attached the covered materials).
A firm with a Monopoly in two markets with different marginal costs should always charge a higher price in the market with the higher marginal costs.
Which of the following is NOT an example of an externality? Explain why the other examples are externalities and why the one you selected is not.
Formulate the following situation as an extensive form game (using a game tree) and solve it using backward induction. What will Bingo choose to do in equilibrium, and what will Canal's response be?
1. What enables banks safely to engage in both maturity transformation and risk transformation?
How does grazing by native herbivores impact grassland ecosystems, what are the differences between pastoralist grazers and ranchers? Which is better for the grassland and how do we know this?
Proposed legislation would required 48-hour notification to all neighbors. This legislation is labeled "environmentally friendly." Analyze the impact to the environment.
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