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Discussions post
1. Listen to the first 15 minutes of the following podcast by Roger Farmer in Macro Musings. The guest discusses the Natural Rate of Unemployment Hypothesis and the limitations regarding the way it is taught in most Macroeconomics Textbooks and offers an alternative view. He highlights the differences between the two approaches by using the Rocking Horse and the Sail Boat analogies. Critically discuss the alternative view described by the author in light of the evolution of unemployment rates over time in the U.S and across countries.
2. Listen to the following podcast by Robert Solow, one of the pioneers of the neoclassical growth model introduced in class last week. You can just listen to the first 30 minutes of the talk. What are the sources of long-run growth as envisioned by the author in his early contributions? Technological progress in the 1980s and 1990s was enabled by the growing use of computers in the production process. What type of technological progress do you think best describe this revolution? Do you think the US and other advanced countries will sustain economic growth over the next 50 years? If so which potential technological revolution could make that possible?
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.
Some commentators have argued that the failure of the “Super committee” is good thing for the economy? Do you agree?
Case study analysis about optimum resource allocation: - Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..
Questions: : Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month? Explain your choice.
Problem - Total Cost, Average Cost, Marginal Cost: - Complete the following table of costs for a firm. (Note: enter the figures in the MC column between outputs of 0 and 1, 1 and 2, 2 and 3, etc.)
Problem based on Oligopoly and demand curve, Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?
Explain the impact of external costs and external benefits on resource allocation; Why are public goods not produced in sufficient quantities by private markets? Which of the following are examples of public goods (or services)? Delete the incorrec..
Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..
Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:
Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..
"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"
Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"
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