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Why would we expect rising risk premiums to occur at the same time a yield curve inverts?
"If Mexico is currently operating at a point beyond its production possibilities frontier, then there are unemployed or misallocated resources in Mexico." Is this statement true or false?
Discuss why this experimental result is strange according to basic economic theory.
Describe a study you might conduct in which it would be appropriate to compute a Pearson r(i.e., a study with one group of participants with two scores
If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development? What conditions would encourage research and development in competitive ..
An increase in quasi-fixed costs will result in a substitution effect that
Assume that two firms sell differentiated products and face the following demand curves: q1 = 15 − p1 + 0.5 p2 and q2= 15 − p2 + 0.5p1 (assume marginal cost is zero) Derive the best response function for each firm. Do these indicate that prices are s..
Discuss the concept of the “optimal amount of inequality.” What are some of the practical problems in determining how much inequality really is optimal?
Determine under what circumstances a contract should be allowed to be rescinded because of a unilateral mistake. Provide one example of a situation
Uncovered interest parity implies that interest rates must be equal across countries. T/F If the exchange rate between dollars and euros is .75, that means that .75 euros equal .75 dollars. T/F A real appreciation means that domestic goods become mor..
What is the shape of the supply curve of total hours? What is the elasticity of total hours with respect to the wage?
What are one example of a monopolistically competitive firm, oligopoly, and monopoly in your local area? In your example, please relate to the market characteristics of each of the market structures?
Suppose the price of capital falls relative to the wage rate and, as a result, the demand for labor increases. Are these inputs gross substitutes, or are they gross complements? What can you infer about the relative strengths of the output and substi..
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