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Q1-You are on the board of directors of a nonprofit art museum supported by donations from wealthy members of the community, and are responsible for acquiring new works and staging exhibitions for the public. You are clearly an agent, but who is (are) the principal(s)?
Q2- Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees? In many smaller cities all McDonald's outlets are owned by the same franchisee. Why is (or isn't) this fact consistent with our discussion of specific investments?
What is your understanding of demand? What are the determinants of demand? Please provide example (market, event, and effect on equilibrium).
What is a government budget deficit How does afederal budget deficit affect the economy How does it affect thelevel of investment and interest rates How does it affect the individual consumer
The costs of manufacturing steel declined substantially from building a conventional hot rolled steel mill down to new mini mill technology that need only scrap metal,
What share will be paid by the consumer in the long run? How about the short run? Provide some intuition for why these are different.
Traditionally, how have estimated labour supply elasticities differed between men and women? How can economic theory explain this? Outline the relevant empirical evidence from the more recent literature? No more than 1200 words.
Discuss why is increasing per capital income necessary but not sufficient for broadly dipping poverty and improving human welfare?
The general demand function for a good, Good A, is: Is Good A a normal good or an inferior good? How do we know exactly?
Draw en Edgeworth box and illustrate. Initial endowement allocation, an indifferens curve for each consumer and the contract curve.
Ice cream and pie if these are goods that you like, but if you eat too much of either, you get sick of them. If you are sick of a good, eating more of it lowers you utility.
Why is the long-run aggregate supple curve vertical Explain the shape of the short run aggregate supply curve. Why is the short-run curve relatively flat to the left of the full-employment output and realively steep to the right
An inflation shock is a disturbance to the usual behavior of inflation that shifts the IA line. A supply shock is a change in the natural rate of output. Graph the long and short run effects of a positive inflation shock and a negative supply shoc..
If a firm charges less than the market price, it loses potential revenue. If a firm charges more than the market price, it loses all its customers to other firms.
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