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Quesiton: 1. If given enough time, why can't households save their way out of credit constraints?
2. Should facilitating micro saving precede microcredit and not the other way around?
3. Crop insurance programs have often failed or have cost governments heavily. Spell out the main advantages and disadvantages of instead directly insuring farmers against bad weather. Describe contexts in which it seems like a better prospect, and places in which it seems less likely to be a winning idea.
Two countries, Home (H) and Foreign (F) trade agricultural and manufacturing goods (A and M, respectively). Production of either good requires skilled and unskilled labor. Unskilled workers can freely move from one sector to another, while skilled wo..
Consider the argument that government spending and borrowing harms long-run economic growth. A. Is this most likely to happen if the private spending crowded out is consumption spending or investment spending.
Total surplus is maximized at the equilibrium price and quantity. Explain how total surplus is still maximized if price increases due to an increase in demand.
What is the long-run equilibrium market price and quantity and what is the long-run number of firms in the industry? How much does each produce? What are their profits?
For each of the following, explain whether it is an example of an automatic stabilizer: a. unemployment benefits increase during a recession
Consider this short run production function Q=100L-L². Where Q is output level and L is labour input. The price of output is 50 and labour cost 1200 per hour. How many hours will the firm use to maximize profits? What is the profit maximizing leve..
A consumer's utility function is given by U(X,Y)=X*Y. The customer has $576 to spend. Px=16 & Py=4. How much total utility does the consumer receive? How much X & Y should the consumer purchase to maximize her utility?
The manager of a corporate division faces the possibility of an audit every year. She preferes to spend time preparing if she will be audited; otherwise, she would prefer to invest her time elsewhere.
What are the possible negative effects due to price ceiling and what happens to the total surplus (total surplus = consumers' surplus + producers' surplus)?
What a favorable supply shock will cause? Other things the same, an increase in the amount of capital firms wish to purchase would initially shift.
Assume that policy makers are pursuing a fixed exchange rate regime and the economy is initially operating at the natural level of output.
Determine the profit maximizing average monthly production capacity
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