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Over the past 20 years, economics has been divided and classified in a number of ways. Behavioral economics, even though discussed and researched over the past years, it hasn't been truly 'defined' or even separately categorized on it's own. If you had to define 'Behavioral Economics', how would you describe it?
Experience does not necessarily have to be work experience. Discuss market equilibrating process in relation to your experience. One of early economic "laws" was called Say's Law which stated that supply creates its own demand.
Explain how large a decline in the value of bank assets would it take to reduce this bank's capital to zero.
As we have seen, some firms prosper by expanding during the recessions. What risks do firms take when they pursue this strategy? Are there circumstances in particular industries under which a more cautious approach might be advisable?
What are your predictions for the US economy over the next two years? Use the macroeconomic models you have learned to present a reasoned answer. Explain your assumptions clearly.
Describe how the circular-flow diagram works. Name the parts of the diagram that correspond to the flow of goods and services if you were to pay $50 for a new pair of shoes at a local shop. Name the parts of the circular-flow diagram that correspond ..
Application Coal mining believes that it can increase labour productivity and, therefore, net revenue by reducing air pollution in its mines. Explain how much pollution reduction should Appalachian Coal Mining Undertake.
In Chapter 11 you read about centralized and decentralized decision making. Between the two philosophies which do you feel works better and why? Feel free to include any experiences you have had under each atmosphere.
Assume that the marginal propensity to save increases. If the Fed wants to keep the level of output from fluctuating, should it undertake open market purchases or sales? In your answer discuss how the composition of GDP is affected.
The producer in the perfectly competitive market above will pick a level of production such that:
What is the present worth of the following cash flow stream? Assume 6% interest (2 pts)
List the three most important expenditure programs of the federal government. How do these differ from the three most important expenditure programs of state and local governments? Explain why it makes more sense for the federal government to purchas..
SOLO Inc. is a monopolist in a particular market. It has estimated that the demand for its product is P = 16 - (Q / 2,000) , and the marginal cost of production is MC = 4 +(Q / 1,000) . If the firm uses uniform pricing, then to maximize profits it sh..
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