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Explain in detail the important aspects and why those aspects occur for optimum currency areas: geographical factor mobility; intra- and inter-industry factor mobility; price and wage flexibility; degree of openness; and product diversification.
What checks and balances are required for these three levels after Americas latest mortgage meltdown?
Consider the bathtub model of unemployment. Let E= 45 million and U= 15 million. If in the next month, the job separation rate is equal to 0.04 and the job finding rate is 0.3, what is the number of unemployed individuals next month?
Suppose that the participation variable, voucher, is completely randomized in the sense that it is independent of both observed and unobserved factors that can affect the test score.
A bar offers female patrons a lower price for a drink than male patrons. The bar will maximize profits by selling a total of 200 drinks (a night). At the current prices, male customers buy 150 drinks, while female customers buy 50 drinks. At this all..
1. One IKEA executive says that the current global economic situation has "pushed innovation" at the company. In fact, he say, "This is a great time to be more innovative." Explain what he means.
How do events, such as the World Trade Center and Pentagon attacks describe in the case study “The Ripple Effects of 9/11” affect the aggregate expenditure line and the aggregate demand curve?
Consider the markets for mobile and landline telephone service. Suppose that when the average income of residents of Plainville is $55,000 per year, the quantity demanded of landline telephone service is 12,500 and the quantity demanded of mobile ser..
Based on the Unit 2 lecture and unit readings, describe the many ways the government affects economic activity. Explain the positive aspects of this government involvement. Now, explain the negative aspects of government involvement. Finally, describ..
Moral Hazard. There is a risk neutral principal and a risk averse agent. The agent exerts effort a that results in output x = a + , where ∼ N(0; 1). Find the first best level of effort. Calculate the profit of the principal. Solve for the second-best..
Suppose a Japanese company discovers a way to split its production process for televisions into two tasks: component production and assembly, and assembly can be offshored to Indonesia. Together, 0.8 units of production labor and 0.2 units of assembl..
Which of the following will increase (shift) the demand curve for white flour, an "inferior" good?
What is reversal of preferences in lamen terms as it relates to decision-making?
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