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Suppose nominal GDP in 2010 was $120,008,000 and in 2011 it was $130,000,000. The GDP price index in 2010 was 140 and in 2011 it was 150. The population in 2010 was 25,600 and in 2011 it was 35,000.
-Calculate Real GDP and Real GDP per capita in each year.
-Calculate the growth rate of Real GDP and of Real GDP per capita.
In the language of economics, we describe an industry that requires very high capital costs for overhead to have a high "barrier to entry" and it is considered a competitive advantage. Can you describe what that is the case?
The secretary general of OPEC, Ali Rodriquez, stated that it would be easier for OPEC nations to make future supply adjustments to fix oil prices that are too high, than it would be to rescue prices that are too low. Evaluate this statement.
Imagine that you have invested $1 million in a McDonald’s franchise restaurant. The investment includes expenses for land, buildings, and franchise fees. What are some of the explicit costs and implicit costs of this franchise operation? How do you e..
If the beta of the stock is 0.8, what is the maximum price you should pay for a share of Tartan Corporation?
Consider an environment where an agent could be either employed E or unemployed U. Let’s normalize E + U = 1, so that E and U is interpreted as the fraction of people employed and unemployed at any given point in time, respectively. What is the proba..
Over the next twenty years, the average overall rate of inflation in Mexico is expected to be 8% per year, while in the United States the overall rate of inflation is expected to average 2% percent per year. Then what would you expect the average ann..
Ron supervises delivery of flowers for a wholesale distributor of fresh flowers, Flowers. Inc. In order to accommodate one of the company's best customers, Ron offers to immediately rush a delivery of fresh peonies. All of the delivery trucks are cur..
Suppose that a small nation produces mushrooms for domestic consumption also possible export.
It seems it is not just Melburnians who love their coffee. Australia wide, the $4.3 billion-dollar coffee industry is expected to grow by an annualised 3.2%
Can you relate the Classical and/or Keynesian macroeconomic models to assumptions about economic behaviors and to economics policies being implemented in the U.S. economy today? Is there anything that you've learned studying these models that gives y..
The following shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MRT, and marginal cost MC: Compare the demand conditions in each market; i.e. how do the two markets diff..
Explain what happens to observed prices in posted offer and double auction markets as the number of sellers drop. Explain what happens in these two markets as the number of sellers drops to only one seller. Explain why part llustrates the first exper..
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