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Highlight the mistakes and/or half-truths in each of the following statements. Answers should not exceed 10 lines each.
a. If one looks at the budget incidence the poor in South Africa benefit most from the budget of government.
b. Expenditure on social assistance may not be viable in the longer term and derail fiscal policies in South Africa, if it is not managed carefully.
Assume constant marginal costs of 25. Compute the equilibrium price, quantity, consumer surplus, producer surplus and if relevant deadweight loss for:
Do you think that Monetary policy is easier to make than fiscal policy? Why is one easier or harder than the other? What is the Goal of each of the policies? Are the goals in conflict or complements of each other?
All consumers have 24 hours in a day, which they can devote to leisure, to work, or to shopping. For each hour a consumer works he or she earns a wage w. Derive an expression for the marginal rate of substitution between groceries ans leisure. Calcul..
How does quantitative easing relate to functions of the federal reserve? What is its purpose in adding more liquidy to the banking industry? Is the federal reserve still using quanititative wasing as of 2016.
A company has an investment project that would cost $40 million today and yield a payoff of $58 million in 4 years. Should the firm undertake the project
Countries seeking to adopt the euro as their currency must meet certain criteria, including the requirements to keep their government budget deficit equal to 3% or less of GDP, and to hold government indebtedness to less than 60% of GDP. Discuss why ..
What do you make of the conundrum Samuels addresses at the bottom of page 295? Does democracy cause economic growth or does economic growth cause democracy?
Should the firm increase capital and decrease labor or the other way around? When should the firm stop replacing one input for the other? Explain.
Suppose there are 13 firms in an industry; in the absence of regulation, each of them emits 4 tons of pollution (so aggregate industry emissions are 52 tons). What would be the equilibrium price of a permit? Calculate the total cost of pollution abat..
Unconventional monetary policy tools include all but
In addition to convection, include the effect of radiation on both side. Determine the heat transfer to the coolant
find the new equilibrium GDP when I increases to 350 and all other values remain the same.
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