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Question 1: What is the difference(s), if any, between the unemployment rate and the natural rate of unemployment? Discuss.
Question 2: The expenditure approach (the sum of all spendings) to measuring the value of the nation's output (GDP) is equivalent to the income approach (the sum of all payments to factors). Discuss and illustrate with examples(s) where necessary.
Question 3: Real GDP is the same as nominal GDP? If yes, why? If no, why? Discuss
Question 4: Does GDP provide an accurate measure of the well-being of the population in a country? Yes or No. Discuss and offer examples where necessary.
The market for autographs by a superstar baseball player during the 1950s and 1960s indicates that while the player's autograph is not rare it remains highly desirable and of relatively high price to collectors. In fact, a baseball signed by this ..
The composition of pennies is 95% copper and 5% zinc. Coper sells for $3.50 per pound and zinc for $1.00 per pound. It takes approximately 130 pennies to add up to the one pound of total weight. It cost the U.S. Mint $2 to produce 100 pennies. The U...
Are innovative product and service offerings ethically neutral? Consider Napster and the intellectual property issues associated with swapping music over the Internet as an example to begin the discussion.
Suppose the national output in the US is below the policy makers' desired level of output and is experiencing a trade deficit. Assume that the policy makers' goals are to achieve the desired level of output (i.e., full employment output) and balanced..
When the net annual cash flows are EQUAL, the cash payback period is computed by dividing the cost of the capital investment by the: If a payback period for a project is greater than its exected useful life, the
The price of cotton rises. What happens in the market for cotton shirts?
Use the following data to calculate (a) the size of the labor force, (b) the official unemployment rate, and (c) the labor force participation rate (defined in Ch. 3) for a hypothetical economy with:
Show how the lottery winning affect your budget line. After winning the lottery you continue to work the same amount of hours every day. What is the income effect of the lottery gain? Now your employer increases your hourly wage. Using the income eff..
Explain which of the following is a positive or a normative statement.
If the logic of classical economics was not at fault for being unable to fix economic problems of the real world, what was in Keynes' opinion? In what publication did Keynes first discuss what would become known as the multiplier? What two criticisms..
What does Beta (β) measure and reflect? Consider the following: A firm’s operations are 45% GREATER than an average firm in the market. Relevant government securities trade @ 3.7%; and the current average return on the market as a whole is 9.1%. What..
You have $100 to spend on food and clothing. The price of food is $5 and the price of clothing is $10. A. Graph your budget constraint. B. Suppose that the government subsidizes clothing such that each unit of clothing is half - price, up to the firs..
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