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When China reformed state-owned enterprises, it tried a new approach to choosing managers: it put managerial jobs up for auction. The bids for the jobs consisted of promises of future profit streams that the managers would generate and then deliver to the state. In cases where the incumbent manager was the winning bidder, firm productivity tended to increase dramatically. When outside bidders won, there was little productivity improvement. If incumbent managers were not generally more qualified, how can you explain this result?
If the economy is experiencing a large recessionary gap, what dicretionary policy might the government use to get the economy out of the output gap?
Ponder this immigration reform: US citizens are given the right to sell their citizenship to whomever they choose at whatever price they can get. Someone who has sold her US citizenship is no longer permitted to remain in the US without an appropriat..
The term tax incidence refers to...
What are two ways that economists have tried to quantify the value of non-market work so that it can be added to GDP to produce a more inclusive measure of economic activity?
Set up an Edgeworth Box to depict this situation and elucidate why the situation is unlikely to be Pareto efficient.
International trade benefits both partners, though not necessarily all citizens. Absolute advantage determines trade specialization. Tariffs are generally preferred by economists over quotas. The U.S. has a large trade deficit with China, although it..
Calculate the arc price elasticity of demand for wheat in the two situations below: Can you explain/account for the difference, if any, in the two elasticities?
Elucidate in writing to what market your derivation brings equilibrium and how it accomplishes this. What are the principal differences between flexible and fixed exchange systems.
What determines whether or not a resource is scarce? Why is the concept of scarcity important to the definition of economics? Discuss the impact of rational self-interest on each of the following decisions. Suppose you go to a restaurant and buy an e..
q.q1. consider two persons ann and bill and two-goodsx and y exchange economy. the total endowment of the economy is
the technology is now developing so that road use can be priced by computer. A computer in the surface of the road picks up a signal from your can and automatically charges you for the use of the road. Explain how would this affect bottlenecks and..
q. how to calculate marginal revenue from demand?a.if the marginal propensity to save is 0.05 how large is the
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