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Consider the production possibilities curve for a nation that can produce either consumption or investment goods. Describe and show the impact of each of the following using the PPF diagram. a. Technological advancement in the production of investment goods that has no impact on production of consumption goods. b. A major recession leads to an unusually high level of unemployment c. A massive 10.2 earthquake causes California to fall into the Pacific Ocean. d. Fundamental shift in cultural values leads to increased preference for investment goods.
I hereby offer you $5,001 if both you and my other creditor agree to cancel my debt. If either or both of you decline this offer, I will be legally in default and you will receive $5,000." So, what happens.
Suppose that net returns are $700 per acre and expected rates of return are 15%, then the estimated land value per acre is:
Find the SPNE of this game. Is there an outcome of the game that both parties prefer to any SPNE? Also find a NE for which the outcome differs from any SPNE outcome.
When oil prices increased 10 fold during the 1973 - 80 energy crisis, many oil companies made huge profits. During the energy crisis, Congress considered imposing an “excess profits” tax on oil companies. If you were in Congress, would you vote for s..
To increase the money supply, the Bank of Canada can:
Apply the aggregate demand/aggregate supply framework to predict how the chained CPI could potentially impact the economy in the short-run. Evaluate the long-run impacts of the change.
Annual per capita consumption of milk in the U.S. is 21.6 gallons. Being from the Midwest, you believe milk consumption is higher there and wish to support your opinion. A sample of 16 individuals from the Midwestern town of Webster City showed a sam..
Gross Domestic Product (GDP) only measures the value of marketed goods and services for a country during a given period of time. Is the GDP measure underestimating or overestimating national production and total income in the economy? Why? What are t..
Consider the following facts. After the age of 25, persons with college degrees earn more than persons with no education beyond their high school degrees, ceteris paribus. Moreover, persons with high school degrees earn the same as persons who have h..
What is your monthly interest rate and what is your annual effective interest rate? What is the future worth of a series of equal monthly payments of $5,000 if the series extends over a period of six years at 9% interest compounded? You borrowed $150..
Which statement is ture as it regards: International Economic Linkages
In January 2010, the price of gasoline was $2.70 a gallon. By spring 2010, the price had increased to $3.00 a gallon. Assume that there were no changes in average income, population, or any other influence on buying plans. Explain how the rise in the..
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