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The following questions are about the one-period macroeconomic model discussed in class. Notice that nothing has been specified about the preferences of the consumer or the production technology of the firm.
Suppose there is a new production technology that increases total factor productivity, z. How does this effect the labor supply choice of the representative consumer?
A dissenting opinion in this case argued that Jerry Schuster did carry on his father's business and should be liable for obligations of the continued business. Does that strike you as reasonable? Shouldn't a warranty be valid so long as the business ..
Research information about the U.S. Government's bailouts. Locate an article about this topic. What company was bailed out and why? What are the pros and cons of providing government assistance in a short and long run?
In December 1994 a man in Ohio decided to deposit all of the 8 million pennies he’d been saving for nearly 65 years. (His deposit weighed over 48,000 pounds!) With a reserve requirement of 12.5 percent, what will be the cumulative change for the bank..
Are the Internet business models B2C and B2B useful or do these models oversimplify complex business relationships?
Do you think governments should step in and help an economy move to potential or are "markets" capable of fixing themselves? Carefully consider the impact of falling prices.
What is the rationale for government to regulate the activities to businesses? How is our economic and social existence shaped by government regulations?
what are factors that determine the volume of production
Illustrate what would production at a point outside the production possibilities curve indicate? What must occur before the economy can attain such a level of production.
Pepsi-Cola® and Coca-Cola® have dominated the market for almost a century whereas General Motors™ and Ford Motor Company© have suffered due to increased competition.
Suppose there are two consumers, A and B, and two goods, X and Y. Consumer A is given an initial endowment of 3 units of good X and 8 units of good Y. Consumer B is given an initial endowment of 3 units of good X and 4 units of good Y. Suppose the..
Rising oil prices cause airlines to adjust flight schedules. Show the effect on airline prices and quantity demanded. Show the shift of supply and/or demand curves and explain why the curve(s) shifted.
Suppose you work as research economist at the EPA. There are two firms that operate in a perfectly competitive marker. This implies that each has the same marginal benefit curve, which in this case is horizontal at MB= $100. Now calculate that social..
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