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Suppose two goods are produced in the economy: an intermediate good, and a final good. Let E_1 and E_F be total expenditure on the intermediate and final goods, respectively. By the expenditure approach, clearly GDP is equal to E_F, since this is (by definition) expenditure on final goods. Show mathematically that the value-added approach to computing GDP must give you the same answer.
Suppose the U.S. president is attempting to decide whether the federal government should spend more on research to find a cure for lung cancer. He asks you, one of his economic advisors, to prepare a report discussing the relevant factors he should c..
Think about the markets for two kids both of supply and demand a good Asbury inelastic both of supply demand for good B is very elastic
Suppose you have a cash flow that pays $10 in every period from time 16 to 50 and you face an interest rate of 10%. What is the present worth of this cash flow?
Calculate various measures of productivity and explain they mean. Explain in words what the marginal productivity of labor and average productivity of labor measures and why this is important information for the owner of a business. Why does marginal..
Elucidate how does consumer surplus after the discovery compare to Illustrate what would exist if the New Jersey oil were supplied competitively.
Potato farming (like farming of most agricultural products) is highly competitive. Price is determined by demand and supply. Based on U.S. Department of Agriculture statistics, U.S. demand for potatoes is estimated to be QD = 184 - 20P, where P is th..
Discuss the power of compound interest and why compounding makes it important for people to save and invest for retirement early in their working life rather than waiting until they are close to retirement.
Compute the value of deadweight loss with the new demand curve to verify your intuition about the answer to the previous question.
What is a key benefit of maintaining a stable value of money?
Draw the wage-schooling locus for someone for whom returns to schooling decrease through college but increase after college
What is the European Union? How do debt problems in Greece and Spain affect the European Union as a whole and its member countries? What are the potential political implications of the austerity measures being currently being proposed in Greece and S..
Shadow Bank 411 buys $3 million more securities in the market and "pays" for them with its account at Bank 411. Bank 411 borrows $3 million more as a first response.
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