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a. When a leading developing country defaults on its loan to foreigners, discuss (with the aid of loan able funds market diagram) why interest rates will rise on bonds issued by many other developing countries.
b. Critically evaluate the use of GDP as a useful measure of economic welfare. Consider why it is useful or not, and indicate what factors other than GDP can be included in a measure of economic welfare.
c. If country A has a higher level of real GDP per person than country B, then people in Country A must enjoy a higher standard of economic welfare than people in Country B.’ Is this statement true or false? Explain your answer.
Explain two distinct factors through which geography can affect a country's income and prosperity. For both of these factors described in part A, discuss whether you think the effect of these on a country's income is fixed over time or whether the ef..
The proportion of real GDP that must be forgone in order to reduce the inflation rate by one percentage point is called:
A production process exhibits economies of scale if:
If the company will sell the number of units obtained in part d and wants to maintain the same profit as last year, what will its new price have to be.
Using demand and supply analyst briefly discuss the effect of each of the following on the market for cigarettes: a cure for lung cancer is found b). The price of cigars increases. c.) Wages increase substantially in states that grow tobacco. d.) A f..
Total hours worked, and average labor productivity all are procyclical. Which variable, output or total hours worked, increases by a larger percentage in expansions falls by a larger percentage in recessions.
A plastics company is considering two injection molding processes. Process X will have a first cost of $600,000, annual costs of $200,000, and a salvage value of $100,000 after 5 years. Process Y will have a first cost of $800,000, annual costs of $1..
To increase a company’s performance, a manager suggests that the company needs to increase the value of its product to customers. Describe three ways in which this advice might be incorrect (Hint: Think about what else might or might not change that ..
When medical care is reimbursed through employer provided insurance whose welfare is ultimately affected when cost of medical care rises: the owners of the firm that pays the premiums, the government whose revenues are reduced because insurance benef..
Amalgamate the information you have gathered and tell the economic consulting firm which actions you think OPEC will take over the next year based on your answers.
Conclude by choosing a position for or against ethnicity-based jury nullification and defend your decision.
The interest rate affects the investment patterns in the economy. A friend of yours suggests a get-rich-quick scheme: Borrow from the nation with the lower nominal interest rate, invest in the nation with the higher nominal interest rate, and profit ..
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