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(1) How do market incentives and disincentives led to the growth or the eradication of poverty? How is poverty measured? What seems to be the best way to life people out of poverty? (2) Explain why the US uses the FTC and the SEC to promote competition in the market. What are the costs and benefits of such governmental agencies? In your opinion, are they worth the costs for the perceived benefits that they provide? (3) Why are American public schools deemed to be inefficient? How do vouchers attempt to correct disincentives while also providing incentives for fixing some of American public school problems? (4) How does China's export-driven economy affect consumer spending in the United States? What products face steep competition from East Asian imported goods? How has American consumer spending shifted due to an influx of such imports? (5) Take the Nash equilibrium as an example of game theory. Explain briefly how it works and its applications in real life? Last, why is game theory considered to be important in the field of microeconomics? (6) Identify and briefly explain 3 pro-market and 3 anti-march market-oriented policies presented by the Obama administration. (7) Briefly explain the economic costs and benefits to how the American government combats crime. Cite examples of the pros and cons. If the United States is a free society, would it incarcerate a very large proportion of the population (and an even larger proportion of those who have been incarcerated)? Is this financially wise? What would be a way to improve the existing system from an economic perspective? (8) How does the money multiplier effect influence shifts in the market? (9) What are the advantages and disadvantages of a strong and a weak dollar for American consumers? Make sure to cite the proportion of the US import-export variables in relation to explaining how this affects consumer behavior. (10) How does the velocity of money influence market behavior? (11) Explain how the paradox of thrift is related to consumer and investment spending. Give 3 examples for consumer and 3 examples for investor spending in your explanation. (12) Imagine serving as an advisor to President Obama. The President is concerned with satisfying American consumers as a means to boost his party's popularity for the 2016 election (pretend that he wants to support the next Democratic candidate). Provide three policies that you believe would yield a short-term benefit for the consumers that would result in boosting the popularity of the Democratic Party. Answer 5 of the following questions in complete sentences. Each question needs a minimum of 8 sentences
why is the monopolistic competitors demand curve more elastic than a pure monopolists but less elastic than a pure
consider the following class of estimatorswsuba 1a1y11a2y21a3y31a4y4 where ai are the constants.a what restriction on
Does it make sense to hold sleep, work, and leisure fixed while changing study? Why or why not? Explain why this model violates the assumption of no perfect collinearity.
open the microsoft excel workbook interactive model economics.xls.on the first tab you will see a figure similar to
Calculate the premerger Herfindahl-Hirschman index (HHI) for this market and suppose that any two of these firms merge. What is the post merger HHI?
Supposing the marginal cost curve is for a competitive industry as a whole, find out the profit-maximizing level of output and price.
The process of lobbying legislatures is itself a big business. State legislatures are under the same kind of pressure from interest groups as the Senate and the House of Representatives.
two non-identical firms a b produce identical products for sale in a market. market inverse demand is p 12 - 2q. the
Daily commuter demand is variable, yet stable and known. Demand for sporting events is uncertain, and depends on the quality of the match, as well as on unpredictable events, like the weather. How would you price these two events differently
1. a special interest group cannot impose its will on the majority because the perceived costs and benefits from
Suppose that the rate of depreciation as well as the rate of saving are each .10. Also assume that there is no technological nor population growth.
"I see that your shoes are ‘buy one, get one free - limit one free pair per customer.' Will you sell me one pair for half-price" The clerk answered, "I can't do that." When the customer started to leave the store, the clerk hastily offered,
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