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The utility for citizens
Consider two nations, one a developing nation and the other a developed nation. The population size of each nation is the same. Suppose that each nation experienced an equally large increase in investment. Which nation is likely to receive the most benefit from this increase in investment? Explain your answer.
Draw a graph of the market for banana. What are the equilibrium price and quantity? Explain why. If the price of banana was $1.50 a box. What would be the situation in the banana market (shortage or surplus)? Explain why and how the price and quanti..
Evaluate: "The fact that some airplanes collide is evidence there is 'too little air traffic control'." (Be sure to explain what too little might mean.)
Suppose that the software market currently has one firm operating -Microhard. What contract should be writen between the bank and Newvel?
Assume the US economy experiences deflation. Trace through the impact on the US macroeconomic variables to the effect on the FOREX rates.
Calculate the breakeven level for the subsiquent YoYo firm. The firm has overhead.
Price Discrimination: Assume that United Airlines knows that it faces the following demand equations and corresponding marginal revenue equations for its (one-way) SFO to Las Vegas route
Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
Provide a graph of the Solow model, indicating the position of the golden rule level of saving (SR), and explain why it is preferred.
The intent of this week exercise is to familiarize with EXCEL and to gain experience and practice in interpreting the output generated by most statistical packages (EXCEL) when linear regressions are run on a set of data.
Illustrtae what is the final impact of expansionary fiscal policy on the price-level and real output.
Adopting the main features of the neoclassical supply of labour, elucidate how these 2 factors may be related.
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
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