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1. Using your knowledge of marginal revenue product, explain the following:
a. A star is paid $200,000 for appearing in a 30-second television commercial. The actor who plays his doubles partner is paid $500.
b. A president of a company is paid not to stay in his job for the last two years of his contract.
c. A jumbo jet carrying 400 passengers is priced higher than a 250-passenger model, even though both aircrafts cost the same to manufacture.
2. The only legal employer of military soldiers in United States is the federal government. If the government uses its knowledge of its monopolistic position, what criteria will it employ when estimating how many soldiers to recruit? What happens if a mandatory draft is implemented?
Determine the main differences in microeconomics and macroeconomics? Give an example of a microeconomic and macroeconomic phenomenon.
Illustrate which national financial policy programs are best for addressing the problems in the U.S. economy
Illustrtae the marginal product of labor.
Illustrate what are the pros and cons of alternative strategies to tackle a foreign market.
Consider a nation with an economic structure consistent with assumption of classical model. Assume that businesses in this country suddenly anticipate higher future profitability from investments they undertake today.
The company for Economic Cooperation and Development (OECD) provides some of the best data and statistics available for comparative international work.
Explain Comparative Advantage, specialization, and trade support by example. Illustrate the invisible hand theorem supported by example.
Elucidate why the $5.15 minimum wage in New Jersey likely has less of a detectable impact on employment.
Suppose you are the owner-manger of an innovative computer software company, and your latest product is so revolutionary.
You have the following information concerning the production of wheat and cloth in the United States and the United Kingdom:
Explain why does competition among traders affect how much of the gains to trade are given to the countries involved in the trade.
Demand for refrigerators is often explained as cyclical and very sensitive to refrigerator prices & interest rates. Given these characteristics, explain the effect of each of the following in terms of;
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