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1. Is there too much rural-to-urban migration in LDCs? Why or why not?
2. In virtually every country, the share of the workforce in agriculture drops sharply as per-capita incomes rise. Why? Is the exodus of people from farms inevitable?
3. How does the migration of labor out of rural areas affect rural development? Why is it hard to answer this question?
4. What is a CGE model, and why are CGE models more commonly used than two-sector models for policy analysis?
Why is efficiency lost at the boundaries as when substantially more of one good and very little of another is produced.
According to behavioral economists, self-control problems:
Suppose a company has a gasoline vehicle, but is considering purchasing a new hybrid vehicle that would cost $20,000, have operating costs of $1,200 in the first year, and have a salvage value of $8,000 at the end of the first year. Find the economic..
If our schools focus more on "life skills" and less on higher level concepts within education, aren't we compromising the information that students need to learn? Could this make our country (and students) less successful in the long run - not mo..
What is the economic costs of an undergraduate degree in economics? What is the major difference between economic profit and accounting profit? Briefly explain decreasing returns to variable inputs?
Use the AD-AS graph to explain the short run and long run effects on real GDP and price level of a negative demand shock, such as a decrease in autonomous consumption. how the economy reacts to the shock and what happens in the long run to GDP and Pr..
Suppose there are 81.0 million people not in the labor force; 154.0 million in the civilian labor force, and 140.9 million employed. Based on these numbers, what is the labor-force participation rate?
Consider a country that produces shirts and autos. Shirts are produced with sewing machines (specific factor) and labor while autos are produced using robots (specific factor) and labor. Labor is mobile between industries. The country is initially..
Go to the following website and read the article about budgeting in a small business. The article talks about six basic steps to a better business budget.
The demand for ice cream is given by QD = 20 − 2P, measured in gallons of ice cream. The supply of ice cream is given by QS = 4P− 10. Suppose that government legislates a $1 tax on a gallon of ice cream, to be collected from the buyer. As a result of..
Assume that the labor supply curve to a firm is the one given in Problem 1 above that is, (E=5W). If the firm’s marginal revenue product of labor (MRPL) 240 – 2E, what is the profit-maximizing level of employment (E* ) and what is the wage level (W *..
Two firms compete in a market to sell a homogenous produce with inverse demand function P = 400 - 2Q. Each firm produces at a constant marginal cost of $50. Use this to compare the output and profits in settings characterized by Cournot, Stackelberg,..
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