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Sample Question: Microeconomics
The technology is now developing so that road use can be priced by computer. A computer in the surface of the road picks up a signal from your car and automatically charges you for the use of the road. a. How could this technological change contribute to ending bottlenecks and rush hour congestion? b. What are some of the problems that might develop with such a system?
Elucidate what happens to Economic growth and Consumption at each stage of the cycle. At which stage of the Business cycle is your firm right now and why.
This problem uses Okun's law to study how the unemployment and inflation rates change when there are demand shocks. Assume that the relationship between the output ratio and the unemployment rate, U is given by the equation U = 6.0 - 0.5 (output ..
Illustrate what are automatic stabilizers. What are some examples. What are your thoughts about the limits of fiscal policy.
Illustrate what do you think about the goal of the IMF's aid to distressed countries. What has been the controversy surrounding the IMF austerity programs.
Assume the economy is slumping into recession and needs a fiscal policy boost.
Suppose that the town of Grayrock had a population of 10,000 in 1998 and a population of 12, 000 in 2003.
Construct a table showing the marginal failure reduction (in units) and the dollar value of these reductions for each inspector hired.
For which of the subsiquent items will the advertising elasticity of demand be relatively higher.
Explain International Monetary System
By how much and in which city is the hotel room cheaper.
Economic theory and history explains that less developed countries that open their economies to international trade and capital flows will grow faster and reduce poverty.
Assume your firm manufactures 3 million hard drives per year specifically for Dell laptop computers and subsequently renegotiates to only purchase for $26.8/unit, how much has Dell increased its own profits
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