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In a short legibly written answer (essay-type) 120 words each.
1. "The accelerating growth of useful scientific, medical and technological knowledge since1750 or so has affected the world more than all other social and political changes takentogether. It has led to a revolution in the human condition that has swept the world, and tothe greatest advance in the welfare of the world's population ever achieved in such ashort space of time." (Joel Mokyr) Discuss
2. In the 1960s, the average United States citizen measured in purchasing power was 33times richer than the average citizen of China (or up to 70 times as rich if measured atprevailing currency exchange rates). Both nations are large continental land masses withlarge populations, and as nations had historically virtually nothing to do with each other tothat time. So why were United States citizens so much richer? Discuss. Also, discusshow and why this ratio has changed since the 1960s and what the prospect for this ratiofor the future is.
The ending of company prepayments balance is expected to be the same as its beginning prepayments balance.
What monetary police would you recommend to the open market committee to deal with prolonged unemployment of the 8% over a two-year period with inflation rate of 3.5% and why? Construct a model of the Fed`s game plan including tools, operating and in..
Discuss the moral hazard referred to as Conflicts of Interest. Give a recent example of one that existed and discuss the actual or proposed remedy. Give your analysis of whether this remedy adequately addresses the problem. Explain your rationale.
A health insurance company knows that there are two types of customers (smokers and non-smokers), each facing different health risks. Explain the problem of “adverse selection” and the problem of “moral hazard.” Give one example of a market in which ..
Explain how Maslow’s lower and higher level needs are related to Herzberg’s hygiene factors and true motivators. Give examples. What is the difference between hygiene and motivation factors?
Suppose you loan $5,000 to a friend to help him start a new restaurant business. Your friend signs a promissory note at a simple fixed interest rate of 5% per year. This note requires repayment in one lump sum five years from the date of the loan. Ex..
A marine equipment manufacture is considering replacing its wired pendant controllers on its heavy-duty cranes with new portable infrared keypad controllers. The company expects to achieve a cost savings of $4,500 the first year and amounts increasin..
When people decide to buy cars, they have to decide between fuel economy and other features. It is argued that there is a "public good" issue involved in this decision. Why might that be? How the existence of public-good characteristics affect the pr..
Advanced Electronics (AE) is a computer chip manufacturer. It has monthly fixed costs of $4,000,000. Its marginal costs are $1.00 per chip. What happens if sales fall by 20% from 3,000,000 to 2.400.000 chips per month? What happens to average fixed c..
Suppose First National Bank holds $100 million in assets with an average duration of 4 years, and it holds $85 million in liabilities with an average duration of 3 years. Further suppose there is a 2-percentage-point increase in interest rates. Calcu..
Suppose that all of the numbered diamonds and spades from a deck of cards (excluding Ace, King, Queen, and Jack) are used to set up a market. The diamonds determine demands, e.g., a 10 represents a buyer with a redemption value of $10. Graph supply a..
Assume that money demand is highly insensitive to the interest rate. Explain what the effects are on interest and income of an increase in government expenditure (G). Which component(s) of aggregate demand are crowded out (i.e., reduced)?
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