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in the New York Times or Wall Street Journal in which economists are quoted using positive and normative statements.
o Provide one quote and its context for both a positive and normative statement. Explain your choices.
o Evaluate the statement choices of your fellow students
Explain what happen if all workers and jobs were identical, there would be just one wage rate, assuming perfect information and costless mobility.
Who would pursue the first objective (maximizing revenues). Explain how could Ralph Lauren s managers provide an incentive for profit-maximizing behavior.
Calculate the Golden Rule level of capital per effective worker and the saving rate associate with this steady state.
Be sure to include an analysis of the stages of production and describe why of the three stages, only one stage is rational for the firm.
Indicate how Ford's management should use this information to make sound strategic decisions.
Elucidate the marginal revenue from the fourth worker
This might be interpreted as an upward shift in the consumption function. Explain how does this shift affect investment and the interest rate.
Explain why might it be appropriate for the government to allow a pharmaceutical company to have a monopoly in the production of a drug.
When prices are ($4, $2), Valerie chooses the bundle (9, 18), and when prices are ($1, $2), she chooses the bundle (8, 14). Is Valerie's choice of bundles consistent with the Weak Axiom of Revealed Preference.
Illustrate happens to the amount of debt held by the public. Illustrate what happens to the level of gross debt.
Does a persistent balance of payment deficits result in a pressure to devaluate the currency.
Consider a perfectly competitive market. Analyze and explain in detail using graphical tools to show what you expect to happen to number of firms and firm profitability in the short run and long run.
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