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Suppose in a particular country, GDP per capita was $3400 in 1960 and $44000 in 2005. What is the average annual growth rate of GDP per capita in this country? How many years it will take for the GDP per capita to double, if it continues to grow at this growth rate?
Graphing the BC. Suppose that an individual has a weekly income of $180 to spend on goods X and Y, which have prices of $2 and $6, respectively. In the space below, using a straight edge and proper scaling, graph the budget constraint. Compute the sl..
Imagine you are a member of Congress. Since consumer spending comprises at least 2/3 of real GDP, you know that increasing that spending would boost the U.S. economy in the short run. During a press conference, a member of the press asks you what you..
On a graph with time on the horizontal axis and yt on the vertical axis, draw the evolution of output per worker over time. Does output per worker grow in the long run? Explain why or why not.
Describe what occurs to American imports and exports when the U.S. dollar is strong. Describe what occurs to American imports and exports when the U.S. dollar is weak.
If a market is perfectly competitive and is in long-run equilibrium, which of the following conditions does not hold?
The production possibilities curves above show all the possible combinations of helicopters and scooters that two towns, Millerville and Jamestown, can create using equal amounts of resources.
If the? long-run average cost curve continuously slopes upward as output? rises, minimum efficient scale would be
Suppose the hotel in the lecture example raised its price from $30 to $30.50. With the new price, the hotel expects 96 guests to arrive 5% of the time, 97 guests 10% of the time, 98 guests 20% of the time, 99 guests 30% of the time, 100 guests 25% of..
Johnny Rotten consumes two commodities, namely garbage and vinyl records. He keeps the garbage in the backyard where it is eaten by goats and vermin. The reason he accepts the garbage is that people pay him $2 per sack for taking it. Write down an eq..
Assuming fuel is one of the main inputs for many sectors. When a war breaks out in Country X, which is the main producer for fuel in the world, it causes fuel supply disruptions in the world.
Suppose that the citizens of Hungary can purchase all the oil they desire at the going international price. If the Hungarian government levies a tax on oil, who bears the burden? Illustrate your answer wit h a supply and demand diagram.
School has issued a new bond, facedd at $1000, maturing in 20 years. It pays interest semi annually, at 8% nominal. The nterest rate of similar School bonds has decreased to 6%. What is the current market value of the School bond.
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