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As an economist working at the International Monetary Fund, you are given the following data for South Africa: predicted per capita GDP, relative to the United States, as given by y=k^1/3, is 0.55, and total factor productivity is 0.33. What is the observed per capita GDP, relative to the United States?
What are some of the steps that the Federal Reserve took in 2008 to prevent further contractions of the economy and money supply? What were the banks' reactions?
Calculate the following elasticities and classify good x. The market situation is as follows: m=$100, Px=Py=$10
What is the particular form of money (M1,M2, etc.) that would be the smallest measure that includes the type of money described in the article. (For example, if the article is about cash, write "M1." Although all other forms of money include cash, M1..
Suppose that both firms decide to collude (form one firm) and maximize profits as one entity. What is going to be the overall production level they choose and the profit they make, respectively
In 2003 at Holloman Air Force Base in New Mexico, test engineers set a world record by moving 192 lb payload at 6,453 miles per hour in a rocket sled. The rocket sled track, built in 1954, is 15.44 km in length. Assume the sled moved at the maximum s..
The electric power industry is held up in the article as an example of a natural monopoly. Brainstorm other examples that can be readily identified in the present market economy.
Illustrate wage would a monopoly union demand. Explain how many workers would be employed under the union contract.
Explain the so-called "Ricardian" model of international trade, including its assumptions, and use this model to explain why and how both of the two countries considered countries gain from free trade between them. What determines the relative extent..
Recently, a bank was trying to decide what fee to charge for "expedited payments"—payments that the bank would transmit at a faster speed to enable customers to avoid late fees on cable TV bills, electric bills, and the like.
What happens to market price and quantity if demand rises but supply falls? Draw them with labels. Qd rises from 40 to 60 if P falls from 12 to 8. PED? Show the formula first and then all calculations. Qs falls from 24 to 16 if P falls from 18 to 12...
What do you think will cause market fluctuations over the next few years as the economy struggles to recover? What areas of the economy should be closely watched as indicators of future activity?
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