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When long-run average costs are rising, short-run and long-run marginal costs: (a) Intersect above average costs; (b) Intersect below average costs; (c) Intersect at the level of average costs; (d) Never intersect.
In the IS/LM model, what are the effects of an increase in the money supply? Show graphically and explain. When is monetary policy more effective, when the LM curve is relatively flat, or when the LM curve is relatively steep? Explain.
What is industrial economics and outline the salient features of the structure - conduct - Performance (SCP) Model
Suppose you discover that average fixed costs are $2 and average variable costs are $7. Indicate what the firm should do.
This year your income from only two years investment was $25,000 and you have to wait for one more year to earn $45,000 and another two years for taking $90,000. If the interest rate was fixed at 13.i ii % per year compounded continuously, how much d..
compute the test statistic. at 95% confidence test to determine if the is a significant difference in the means of the 3 populations.
The terms of trade between two countries refer to
The economy begins in long-run equilibrium. Then one day, the president appoints a new chairman of the Federal Reserve. This new chairman is well known for her view that inflation is not a major problem for an economy.
Equilibrium of Price/Quantity/Consumer Surplus/Producer Surplus? If a tax is introduced and it is $1 per unit, what are the new Price/Quantity/Consumer Surplus/ Producer Surplus/ tax revenues? What is the deadweight loss of the tax?
Consider a REIT that holds high quality office buildings in some of the best locations in the US. The REIT is currently traded at a price of $64/share and there are 70 million shares outstanding. Using the information below answer the following quest..
Producer and consumer surpluses are measures of:
Suppose there is a $200 billion recessionary gap. If there are no taxes or imports to restore the economy back to potential GDP how much should government expenditure be changed if the marginal propensity to consume is 0.75? Does government expenditu..
Suppose there are two goods being produced in the economy: robots and wheat. Robots are a capital intensive good and wheat is a labor intensive good. Supposethat there are two countries: France and Brazil. France is capital abundant andBrazil is labo..
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