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Use the production possibilities frontier (PPF) to demonstrate economic growth.
a. With consumption goods on one axis and capital goods on the other, show how the combination of goods select this period affect the PPF in the next period.
b. Extend this comparison by choosing a different point on this period's PPF and determining whether that combination leads to more or less growth over the next period.
The ABC Corporation is contemplating purchasing a new computer system that would yield a before-tax return.
Assume a one-time decrease in population, possibly caused by an onset of disease or a sudden out-migration.
Write down the budget constraints when young also when old also the lifetime budget constraint for both types of consumers.
Joe has $16 to spend on Twinkies and Hohos. Twinkies are prices at $1 and Hohos are priced at $2 per pack.
A farmer owns a plot of ground also sells the right to pump crude oil from his land to a crude oil producer.
illustrate what is james opportunity cost of producing chickens which person has an absolute advantage in which activities which person has a comparative.
A bank manager advises all of his loan officers that the average cost of funds for the bank over the past year
Assume that every driver faces a 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,000.
If a deposit outflow of $50 million occurs, which balance sheet would a bank rather have primarily or the following balance sheet.
Assume an endogenous growth model with labour augmenting technology.
If a tax were to be imposed on one of these items, for which item would the tax be the most efficient.
Assume a household receives a grant of $500 of food stamps every month. How will this household's budget line be affected.
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