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1. Can a country invest too much? How might you assess what is too much?
2. Suppose ?rms extrapolate from recent growth in demand to future growth in demand. They invest when capital is insuf?cient to meet projected demand. If current capital exceeds what is required to meet expected demand, investment is cut to zero. How could an econ- omy that worked like this generate investment-led business cycles?
3. Suppose interest rates rise sharply but are expected to fall again in a year or so. How do you think this would affect the level of investment in machines with short lives and those with very long useful lives?
Some of the Tennessee Valley Authority’s electricity generating plants are powered by coal purchased via a separate TVA procurement division. Power plant managers often complain that the coal is below grade and causes problems with plant maintenance ..
At present current business how do changes in macro environment effect individual companies and industries through microeconomic factors of demand, production, cost, and profitability?
Assume that the demand curve is given by the following: p=100 and the supply curve is given by Q=p-25. If the government puts in place a tax of 10 that must be paid by the buyer the deadweight loss that results is equal to:
Read the case study - Bad News Memo or email: Reassuring Staff After Layoffs (From Dr. Guffy's case studies)
The question related to Economics and it is discuses the scenario of a town whose main source of income is fishing and various industries support fishing. The town wants to develop a tourism plan.
What does GDP tell us?
angela derives utility from coca-cola c and attending rock concerts r. her utility function is urc c0.9r 0.1 where c
consider a group of college students who all receive a 1000 money endowment from their parents at the start of both the
write down the three functions of money and why are they significant? write down the differences between m1 and m2? how
Identify and discuss three externalities, which can either be positive or negative - Conclude why an externality might exist in the situation that you described, and determine the solutions to mitigate these particular externalities.
All non neutral taxes are undesirable
suppose the initial conditions of the economy are characterized by the following equations. in this problem we assume
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