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1. Travel on a train between Paris and Madrid and the view from the window changes- ?uctuating between green land and a heavy concentration of economic activity. What explains this bunching of activity over space? Could similar factors explain the bunching of activity over time (the business cycle)? If so, how should governments respond to the business cycle?
2. What role do you think consumer and ?rm psychology has in driving the business cycle through ?uctuations in demand?
3. What are the impulses and propagation mechanisms of Real Business Cycle theory and Keynesian models?
Calculate the cash flows for the new crystal jewelry project given the assumptions - Compute net present value and internal rate of return of the project.
you start an insurance company as your first entrepreneurial venture after graduation. your main product line is
Predict the type of long-term care needed as the 21st Century America advances in age. Defend or critique the type of care patients obtain in private nursing homes as compared to public institutions or in-home care. Provide a rationale for your re..
explain how foreign exchange rates are determined. how do changes in interest rates inflation productivity and income
Consider a market where demand is P=10-2Q. There is a negative production externality of $2.50/unit of consumption. Supply is equal to ??=??2. What is market equilibrium? What is the socially optimum quantity and price??
Suppose that two economies share a common steady state so that there is convergence between them. The poorer country closes 2% of the income gap between them each year.
Compute the unique Pareto-efficient allocation of the "Robinson Crusoe Economy" and illustrate the producer's and the consumer-worker's problems in one and the same diagram.
What are the factors that underlie a nation's decision to allow its currency to be determined by free market forces or to be fixed against some standard of value?
What type of barrier to entry was used by De Beers throughout much of its history to maintain its monopoly position - If society is producing nine units of bicycles and four units of computers and it now decides to increase computer output to six, t..
describe your understanding of externalities by providing an example of a positive externality and a negative
An online stock trading company makes part of their revenue from clients when the clients trade stocks therefore, it is important to the company to have an good idea of how many trades its clients are making in a given year. In a sample of 120 client..
Some lenders charge an up-front fee on a loan, which is subtracted from what the borrower receive. This is typically described as "points"(where one point equals 1% of the loan amount).
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