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Recently, a bank was trying to decide what fee to charge for "expedited payments" - payments that the bank would transmit extra-speedily to enable customers to avoid late fees on cable TV bills, electric bills, and the like. To try to determine what fee customers were willing to pay for expedited payments, the bank conducted a survey. It was able to determine that many of the people surveyed already paid fees for expedited payment services that exceeded the maximum fees that they said they were willing to pay. How does the bank's finding relate to economist's traditional focus on what people do, rather than what they say they will do?
1. Explain the difference between general-equilibrium models and partial-equilibrium models. How are the numbers of endogenous and exogenous variables related to whether a model is a partial-equilibrium or general-equilibrium model?
How does industry-level price elasticity of demand shape the opportunities for making profit in an industry How does the firm-level price elasticity of demand shape the opportunities for making profit in an industry
How does an increase in an excise tax on cars affect the supply of cars. more cars will be made or fewer cars will be made or else.
Has the capital structure changed significantly over time? Is this an appropriate capital structure for this business? Why or why not?
Assume there is an imperfect capital market. Draw a graph to show the optimal years of schooling for an individual with high access to funds but of low ability and an individual with low access to funds but with ..
Explain what short-run impact immigration is likely to have on natives' wages and employment when immigrants are a) substitutes to natives and b) complements to natives. Explain also the so-called immigration surplus for the short-run case.
Is there too much or too little smoking? Explain why smoking bans on bars and restaurants do not efficient solve an externality problem.
Mankiw discusses that if federal authorities suppose responsibility, entire financial system might well become a group of government sponsored enterprises.
What would each of the following events do to the terms of trade of the importing country and the exporting country, other things being equal?
Why would change leaders need to align the organization's people with the change strategy Would it be easier to just tell workers of the change and demand compliance? Or, would integrating workers' ideas and capacities before a change.
Briefly explain how this will affect money supply over time and how, even without any intervention on the part of the government or the central bank, the economy would self adjust over the following few years.
Evaluate this statement: " profit-maximizing firms lack an incentive to provide job safety, and consequently, the federal government must intervene legislatively to protect workers against unsafe working conditions that will surely result."
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