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Answer the following questions. Make sure to give full and complete answers with support. Explanations should be a minimum of 5-6 sentences each.
o If the Federal Open Market Committee is not allowed to simply declare Interest Rates, what authorities do they have? How do these lead to changes in the interest rate you pay?
o Go to the "Board of Governors of the Federal Reserve System" page (there is a link provided under the reading list). Open the statement provided from the most recent FOMC meeting and explain their current outlook on Economic Growth. What are the positives and negatives they have identified?
o What is the dual mandate of the Federal Reserve? How are these two things consistently at odds? Explain. How does this make the job of the Federal Reserve tricky? Explain.
Hint: You'll need to find the Dual Mandate on the Federal Reserve's website. It may also be helpful to research the intent of the mandate.
o Describe the necessity for the Board of Governors within the Federal Reserve Banking System to maintain some isolation from public policy (politics).
What protections are they afforded to help avoid the issue of political persuasion/corruption? Why might these protections also be counterproductive?
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.
Some commentators have argued that the failure of the “Super committee” is good thing for the economy? Do you agree?
Case study analysis about optimum resource allocation: - Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..
Questions: : Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month? Explain your choice.
Problem - Total Cost, Average Cost, Marginal Cost: - Complete the following table of costs for a firm. (Note: enter the figures in the MC column between outputs of 0 and 1, 1 and 2, 2 and 3, etc.)
Problem based on Oligopoly and demand curve, Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?
Explain the impact of external costs and external benefits on resource allocation; Why are public goods not produced in sufficient quantities by private markets? Which of the following are examples of public goods (or services)? Delete the incorrec..
Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..
Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:
Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..
"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"
Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"
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