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It may be argued that Japan's explicit promotion of its microchip industry was an excellent example of successful industrial policy. What criteria would you apply to determine whether such a policy is or is not successful? Judging from your own criteria, was Japan's exercise successful? Why or why not? What information would a government require to increase the probability that its industrial policy would promote long-term self-generated economic growth?
Average cost of producing 70 pies in batches of ten is $5.00 per pie and the average cost of producing 80 pies in batches of ten is $4.50 per pie. Elucidate the marginal cost of the 8th batch of pies.
Compute the regular expenditure multiplier also the net tax multiplier if the level of consumption increases from $80,000 to $92,000 as a result of change in income from $120,000 to $140,000.
Conclude whether there is an arbitrage opportunity in the option market, using the put-call parity.
Suppose that there are freezing temperatures in Florida. At the same time the press reports that drinking orange juice significantly reduces the risk of stomach cancer. Predict the effect on equilibrium price and quantity.
Calculate the cost elasticity of demand as well as for paint as well as show your calculations.
What must the CFO expect about the Australian Dollar/US$ exchange rate 1 year from now if she chooses to invest in the US $ CD's instead of the Australian CD's.
Explicate 2 important indicators the Federal Reserve System will use to analyze this particular economic situation.
Derive an expression for average cost. Derive an expression for marginal costs.
Elucidate in detail how banks operate. Include a description of how banks generate profits.
If hard freeze eliminates Brazil's premium coffee crop, illustrate what will happen to the price of premium coffee.
Illustrate what can you say about the change in equilibrium price and quantity.
Use the endogenous growth model to determine the effects of this on the paths of aggregate consumption and aggregate output overtime.
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