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Q1. Explain how meeting-competition clauses may serve as an enforcement mechanism for price-fixing agreements of cartels. The discussion of Chapter suggests another possible rationale for such clauses. Illustrate what is it?
Q2. Assume there are two groups of consumers and that it is optimal for a non discrimination monopoly to set p=$10. At that price, no one from the first group chooses to purchase. Now, Assume the monopoly can price discriminate. Will the total output expand? Why or why not?
What is a budget deficit. Explain how are budget deficits financed? Why do Keynesians believe that budget deficits will increase aggregate demand.
Which is a tax on profits generated from mining of iron ore and coal.
Elucidate an example of a microeconomic and macroeconomic phenomenon. Would you give an example of a microeconomic decision you have made at home or work.
If there was a capital gain tax of 30 percent, what is the after-tax real interest rate, with the inflation rate of 8 percent.
If instead the Fed wants to stabilize aggregate demand, how should it change the money supply..
Is it advantageous for all countries to utilize cheaper labor or does importing your goods.
Describe the Schumpeterian notion of "creative destruction"
Illustrate what is the short-run market supply curve. Find out the short-run equilibrium cost and quantity in this industry.
A cousin of James Darwin, examined the relationship between the height of children and their parents
Draw his budget constraint in terms of S and T. What is the slope of the budget constraint and how does it relate to the relative price.
Depict the von Neumann-Morgenstern utility index u in a diagram
What is the value of net domestic product (NDP)? What is the value of national income (NI).
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