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Q. Describe the following terms in your word.
• Gross domestic product (GDP) • Real GDP • Nominal GDP• Unemployment rate• Inflation rate• Interest rate
Following are the examples of economic activities:
• Purchasing of groceries• Massive layoff of employees• Decrease in taxes
Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.
How do prices, output, and profits differ between monopolies and monopolistically competitive firms.
Assume there is a drought that destroys a large portion of the tobacco crop. Explain what happen in the marketplace for tobacco.
Population growth in developing nations has proceeded at unprecedented rates ower the past few decades.
Calculation of the unemployment rate and part time workers who would prefer to work full time.
How great an open market purchase or sale of securities should the central bank undertake to restore the original interest rate.
Sketch the extensive form of the game, carefully labelling the players that move and the actions they have available
For each option calculates the profit-maximizing price and quantity. Which, if any, of these compensation schemes would alter the deadweight loss from monopoly.
Carefully explain the concept of the reaction function in duopoly analysis.
Quantity, whole revenue and profit when company charges different price in each market and exploits its total profit.
Assume that the returns of these stocks are independent of each other. Find the mean and standard deviation of the total amount that this investor earns in one year from these four investments.
If she neither borrows nor lends, which project has the higher present value at the interest rate 50%. Which has the higher present value at an interest rate of 5%.
Suppose that the demand for orange increases. Carefully explain how the rationing function of price will restore market equilibrium.
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