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1. A country is described by the Solow model, with a production function of y=k ½. Suppose that k is equal to 400. The fraction of output invested is 50%. The deprecation rate is 5%. Is the country at its steady state level of output per worker, above the steady state, or below the steady state? Show how you reached your conclusion.
2. In Country 1 the rate of investment is 5%, and in Country 2 it is 20%. The two countries have the same level of productivity., A, and the same rate of deprecation, δ. Assuming that the value of α is 1/3, what is the ratio of steady state output per worker in Country 1 to steady state per worker in Country 2? What would the ratio be if the value of α were 2/3?
Market structure. How concentrated is the market? Would you characterize the market as monopolized, competitive, or an oligopoly? Who are the major players (if any)? How did you decide where to draw the market boundaries, both geographically and i..
In what sense, if any, are people in poor countries trapped by poverty? Contrast the views of Sachs, Easterly and Banerjee and Duflo. Be sure to explain the views of the various authors using supporting evidence from the relevant texts. Which argumen..
Elucidate what other types of variables should be considered when determining what is reasonable in terms of maintenance expense.
According to the Coase Theorem, the rancher should not care whether the farmer or the rancher owns the lake. Explain why for your answer.
If you deposit $1000 now, $3000 four years from now followed by five quarterly deposits decreasing by $500 per quarter at a rate of 12% per year compounded quarterly, how much money will you have in your account 10 years from now?
A nightclub manager realizes that demand for drinks is more elastic among students, and is trying to determine the optimal pricing schedule. If the nightclub can set a separate cover charge and price per drink for each group, what two-part pricing sc..
Banks attempt to screen out the good credit risks from the bad credit risks to reduce the incidence of loan defaults. To do this, banks do all of the following except:
A firm is hiring 9 workers at $8.00 per hour. In order to hire an additional (10th) worker it must raise the wage it pays (to all workers) to $8.50 per hour. The marginal factor cost to the firm of hiring the 10th worker is
Basically the research is about Audi Company. Then talking gerenrally about how it is performing. In addition, research about the Business
One supply side measure introduced by the Reagan administration was a cut in income tax rates. Use an aggregate demand/aggregate supply diagram to show what effect was intended. What might happen if such a tax cut also shifted the aggregate demand cu..
Mr Patel runs a motel in Tampa, FL. The market is highly competitive since there are many hotels in the surrounding areas and the average room rent per night is $35. There are 30 rooms are Mr Patels motel and each room can be rented for 30 nights a m..
If Inputs A and B are respectively 20% and 40% of the cost of producing this product, what is the effective rate of protection on the product?
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