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Discussing about the lemons problem and its effect on the efficient functioning of a market. How might the information about lemons be useful to you, or a friend/ relative in daily life?
What are the economic justifications of the size premium? In factor pricing models like the intertemportal capital asset pricing model (I-CAPM) or arbitrage pricing theory (APT), it is assumed that exposure to one of these factors represent exposure ..
Problem associated with third video: demand with perfect complements. Graph her budget set with dozens of hamburgers in the x axis and dozens of buns in the y axis.What is the slope of the budget line? Give an interpretation for this number. Tiring o..
The Marginal Rate of Product Substitution (MRPS) is the rate that one output must be decreased as production of the other output is increased. The most common form of MRPS is?
What will be the government deficit. If the government finances the deficit by issuing bonds, what amout of bonds will it issue?
Consider a hypothetical closed economy in which households spend $0.65 of each additional dollar they earn and save the remaining $0.35. The marginal propensity to consume (MPC) for this economy is? , and the multiplier for this economy is ?.
Reflect upon the strengths, weaknesses, opportunities and threats associated with a business that you are familiar with (one you work at, one you completed your assignments on, or one you have just acquired knowledge about). Suggest two (2) strategic..
For the closed-economy, one-period model, suppose that U (C, l) = min (C, β × l), and F (K, N) = αK + δN, where β > 0, α > 0, and δ > 0. Determine consumption, employment, output, leisure, and the real wage in a competitive equilibrium, and explain y..
John and Peter both want to save some money. John decides to save $1,000 every year in an account that pays 4% interest per year compounded annually. How much will be in each person’s account at the end of 20 years, counting from when John started sa..
Determine algebraically the equilibrium price and quantity. The market demand and supply function for pizza in Oldtown were:
When entrepreneurs are investing their own money, how do they decide which projects they should undertake? When political decision-makers allocate the funds of others (taxpayers), how do they decide which projects to support? Explain.
A consumer has income of $500. chips costs $2 , and burger costs $6. Draw his budget constraint (put burger on the horizontal axis). What is the slope of her budget constraint? Draw Consumer’s indifference curves for chips and burger if you love chip..
Which other value than honesty and loyalty plays a role into satisfaction in the workplace?
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