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Imagine that we know that Okun's Law applies to a particular economy, let's call it "Messi-land". Suppose we are told that over a certain period employment in Messi-land grew by 2% while over the same period the labour force in Messi-land grew by 3%. Assume that the natural rate of unemployment in Messi-land has not changed over the period. What can we say must have happened to the output gap in Messi-land over the period? Has it risen? Fallen? Remained the same? Can't say? Explain your answer fully.
Herbert spends all $50 of his pay check on food and shelter which each cost $5 per unit. What is the equation of his budget line?
Describe a job compensated with incentive pay in your company. What performance evaluation metric is used, and how is it tied to compensation? Does this compensation scheme align the incentives of the employee with the goals of the company? Estimate ..
Illustrate what type of industry benefits the most from technological innovation? Select an article from either either a peer reviewed or current popular periodical on an industry of your choice and discuss this question from the perspective of th..
Suppose that you have 2 buyers. The first buyer values your product at $10, and the second buyer values your product at $6. You estimate that the probability of getting a high valued customer is 40%. Your marginal costs are $3. What is your optimal p..
If policymakers increase aggregate demand, the price level
A local department store puts out products at an initial price, and every week the product goes unsold its price is discounted by 25% of the original price. If it is not sold after 4 weeks, it is sent back to the warehouse.
How many Argentine pesos would it cost given the new exchange rate you just calculated.
A parking lot in Hong Kong is choosing between incandescent lamps or the newly developed LED light bulbs to renovate its lighting system of a total of 1,000 lamps for use of 12 hours daily. Discuss the financial feasibility of using either lighting t..
You are also aware that sometimes when you and the other project members are slaving away over the project, she is playing golf with senior managers. Illustrate what is your evaluation of her behavior.
Explain with a graph how a ticket price ceiling placed on a monopoly sports franchise that does not sell out its games may actually lower ticket prices and raise attendance. Assume that marginal costs are fixed. Do you support legislation that would ..
A book printing company operates under zero-profit condition in a competitive market. Suppose this company invents a new production technology which reduce its average total costs in the process of printing. If the new production technology is protec..
Why did rising house prices make US retail banks more willing to provide mortgages for low-income earners with poor credit histories?
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