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Question
If the government, and through the enforcement of antitrust laws, believes the presence of competition in the marketplace achieves the highest level of market efficiency and fosters economic growth, why do governments have monopoly in providing some services such as DMV offices, professional licensing, business licenses, policing, public transportation, etc.? Is there efficiency in the government monopoly model? Or is there a room for improving efficiency in government agencies? Do you think we will have better public services if the government has competition?
Explain the difference between positive and normative economics and how this affects ethical decision making Briefly define the following two terms in your own words: Positive economics Normative economics For the sake of argument (and this assignmen..
How does the Financial Accelerator influence both aggregate demand and supply? How is Bernanke & Gertler’s analysis pro-cyclical?Consider the following functions: Qd = -4P + 190 and Qs = P - 10. Further assume that the government has institutes a pri..
What is the 99% confidence interval? What is the new critical value for this calculation?
Suppose a bank has demand deposits of $2500, excess reserves of $125, and a reserve requirement of 25 percent. what is the loss in the money expansion process of the whole banking system if the bank decides to lend out only $100?
Suppose that Coca-Cola is currently paying a dividend of $1.75 per share, the dividend is expected to grow at a rate of 5% per year, and the rate of return investors require to buy Coca-Cola’s stock is 8%. Calculate the price per share for Coca-Cola’..
Do higher saving rates affect longrun economic growth? Explain. Do higher investments in research and development affect longrun economic growth? Explain. Explain with the help of a graph how the efficiency wage might cause unemployment.
Assume I won 100 million dollars in a lottery that pays installments of 20 million dollars a year for five years or a lump sum of less than 100 million dollars. If I take the installments, my first installment would come the day I claimed my winnings..
What are common stereotypes of the specific minority groups explained in the training guide? How may one differentiate those stereotypes from accurate descriptions of the minority groups?
Calculate the present worth of the equipment described in question 4 given a 10% discount rate. An entrepreneur has found a way to turn straw into gold, but he needs $5 million to create the necessary machinery. He wants to earn a 25% rate of return ..
Complete the following table by indicating whether each of the scenarios describes the concept of tying, resale price maintenance, or predatory pricing. Scenario Tying Resale Price Maintenance Predatory Pricing Cubit is the only firm producing office..
A teacher needs to grade 200 exams. She claims that exams require an average of 12 minutes to grade with a standard deviation of 3 minutes. A random sample of 36 exams is selected. Suppose the sample mean is 11 minutes. What is the probability that t..
After 10 years of stamp collecting, what is the future worth of the stamp collection?
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