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Q1. Besides elections and campaigns, do the major political parties influence public values and ideas? Do you think their level of influence is appropriate? Why? Do minor parties influence public values and ideas? If not, Explicate why. If so, Explicate how.
Q2. Assume we have a Cobb-Douglas production function of Y = K0.5L0.5. Assume s =0.25, d = 0.25, and initial k = 5. Derive the steady-state level of capital (k*) (calculate until Dk is at a level where the first 2 decimal points are 0.
A. Illustrate happened to capital accumulation? Did the capital stock increase or decrease.
B. Did the economy (y) increase or decrease? Why do you think which happened?
Repeat these calculations for the third, fourth, and fifth years, assuming that the Government taxes at a rate each year and has noninterest expenditures annually.
Suppose that investment decline by 40 units to a level of 60. What will be the new level of equilibrium income.
As manager of City Racquet Club, you must determine the best price to charge for locker rentals.
Evaluate whether and to what extent the human failures that led to the disaster can and will be corrected.
Suppose that you are in a committee meeting of the United Nations
A Fenway park, home of the Boston Red Sox, seating is limited to 39.000. Hence, the number of tickets issued is fixed at that figure. Seeing a golden opportunity to raise revenue.
Explain how is the cross elasticity theory used to empirically define economic markets.
Calculate gross national product and net national product
Suppose that firm A and firm B can form a joint venture to pursue either or both of their R&D programs.
Assume that this cost is set by an upstream wholesaler with monopoly pricing power.
Does the aggregate demand-aggregate supply model support Bernanke's thesis.
Under what circumstance would you be no worse off if the company paid you cash instead of providing a car.
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