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When an inefficient firm or a firm producing a product that people no longer want goes out of business, people are unemployed, but that is part of the normal process of economic growth and development. The unemployment is part of the natural rate and need not concern policy makers. Discuss that statement and its relevance to the economy today.
How much do monopolies charge, and how much do they produce?
Are there other ways to structure a social security system that might alleviate some of the problems associated with this one? Explain.
Why is the fact that stock prices follow a random walk a signal of stock market efficiency? What would have to be true if stock prices did not follow a random walk?
Suppose that now the market is monopolized (e.g. a cartel is formed that determines the price and output as a monopolist would and allocates production equally to each member). Draw a figure showing the monopolist's equilibrium output and price.
How might consumers have benefited from the merger of XM and Sirius (News, p. 229)? How might they have lost?
Why can host countries gain from an inflow of investment by MNCs? What sorts of distortions in host countries may make such an inflow less advantageous? Do host countries need special policies to regulate the operations of MNCs?
The Manor Corporation has $800,000 of debt outstanding, and it pays an interest rate of 12 percent annually. Manor's annual sales are $2.4 million, its average tax rate is 35 percent, and its net profit margin on sales is 7 percent.
If the level of U.S. production does not depend on the balance on goods and services, how would running this surplus affect our current standard of living?
Calculate the opportunity cost of producing olive oil and pasta in both Greece and in Italy.
When disparities exist from census information, housing starts data and other research data when seeking for information to help with predicting the power tool market
Assume all taxes are collected. Is the Government experiencing a budget deficit in equilibrium? Why?
At the symmetric equilibrium, what are the industry output and price levels? What are the equilibrium per firm output and profit levels? What is the equilibrium social welfare (defined as the difference between the area under the demand function a..
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