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1. Why do you think macroeconomists focus on just a few key statistics when trying to understand the health and trajectory of an economy? Would it be better to try to make use of all possible data?
2. Consider a nation in which the volume of goods and services is growing by 5 percent per year. What is the likely impact of this high rate of growth on the power and influence of its government relative to other countries experiencing slower rates of growth? What about the effect of this 5 percent growth on the nation's living standards? Will these also necessarily grow by 5 percent per year, given population growth? Why or why not?
Suppose we have two countries, the United States and Mexico, and one good-computers. Assume the following for each country: United States: Qd = 5000 - P and Qs = 2P - 1000 Mexico: Qd = 5000 - 2P and Qs = P - 2000
A major marketing company is interested in evaluating the return to television advertising on sales. For that they want to use the following simple linear regression model: where qi is measured in millions of dollars, and Ai is a binary variable eq..
Suppose that last year, the nominal exchange rate between the Japanese yen and the British pound was ¥225.0 per £1.0, one unit of Japanese output cost ¥2000, and one unit of British output cost £8.0
A national park in California contains the tallest known redwood tree, as well as remnants of the coastal redwood ecotype that once dominated coastal California. The park does not receive many visitors; it has been estimated that no more than 5,00..
(Money Versus Barter) "Without money, everything would be more expensive." Explain this statement. Then take a look at a Web page devoted to barter at http://www.ex.ac.uk/~RDavies/arian/barter.html.What are some current developments in barter exch..
You are a monopolist selling bowties for dogs. If B is the number of bowties, you have a total cost given by C=(B^2)/2 and a Marginal cost given by MC=B. The market for bowties is characterized by an inverse demand curve of P=90-B.
A monopoly faces a market evenly split between high valuation consumers, with demand p= 10- y and low valuation consumers with demand p= 8- 2y. Marginal Cost = 0 arbitrage is impossible and the firm is free to to use.
a company is considering replacing a painting machine purchased 9 years ago for 700000. it has a market value today of
Environmental pollution is, for the most part, reversible, in the sense that it can be decreased if the appropriate steps are taken. What are the pros and cons, therefore, of using sustainability as a criterion for evaluating environmental policie..
Suppose an economy's real GDP is $42,000 in year 1 and $43,200 in year 2. What is the growth rate of its real GDP? Instructions: Round your answer to two decimal places. The growth rate of the economy's real GDP =_____%
Show that multiple steady-state equilibria are possible in this economy.
They want to deposit the sum in an account that earns 8% compounded continuously. Beginning when she turns 6 and ending when she turns 21, how much should they deposit on each birthday if she is to get $28,000 on each birthday from her 21st to her..
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