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Two economies are identical except that the level of capital per worker is higher in Highland than in Lowland. The production functions in both economies exhibit diminishing marginal product of capital. Which economy will experience higher output per worker for each unit of capital per worker and why?
Entrepreneurs do all of the following except:
People respond to images from their culture. Consider that the leading automobile maker wants to use an animal as an image in their advertising for a new line of fuel-efficient, hybrid vehicles. Take three paragraphs and pick two animals you think wo..
An estimated 1.8 million students take on student loans to pay ever-rising tuition and room and board (The New York Times, April 17, 2009). It is also known that the average cumulative debt of recent college graduates is about $20,100. Let the cumula..
Describe the concept of strategic interaction in game theory and how it differs from single agent or player games (e.g. a monopoly or an individual maximizing their utility)
A company is trying to predict the long-run market share of a new men's deodorant. Based on initial marketing studies, they believe that 35% of new purchasers in the market will ultimately try this brand. Develop a general model for predicting long-r..
Business Week recently declared, “We have entered the Age of the Internet” and observed that when markets for goods or services gain access to Internet, more consumers and more businesses participate in the market. Use supply and demand analysis to p..
Cab Wheeler is a newly hired business analyst with your group. Cab has always felt that questionnaires are a waste and interviews are the best way to elicit requirements. Now that you will be doing a systems project for MegaTrucks, Inc., a national t..
Outline some poly options for government intervention. Describe how market power prevents optimal outcomes. Explain how externalities distort market outcomes. Explain how the economic growth is measured.
At what value of p would you be indifferent between these two alternatives? Given your response to part a, would you be classified as risk averse, risk neutral, or risk seeking? Suppose that alternative 2 changed so that you would receive $1,000 with..
Using the supply and demand analysis of the market for reserves, indicate what happen to the federal funds rate under the following situations: The Treasury has just paid a large bill to defense contractors and as a result its deposits with the Fed f..
Assume the Bank of Japan allowed the money supply to grow by 2% each year while the Bank of Korea chose to maintain relatively high money growth of 12% per year.
What is regionalism? Use European Union as an example to illustrate the major steps toward regional integration. What major features can you identify for regional integration in Europe, North America and East Asia? What are the dynamics for regional ..
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