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Should we be concerned about a growing federal debt?
a. No, because budget deficits are more impor- tant to worry about than the federal debt.
b. No, because federal debt, unlike private debt, does not have to be repaid.
c. Yes, because a large federal debt may slow the rate of economic growth in the future.
d. Yes, because if the debt grows too large, we will have to receive bailouts from other countries, which means they will be able to control our policy and economy.
e. Yes, because it is likely that the government will confiscate the savings of individuals to pay for the debt.
Since the movie, Avatar, 3-D movies have been popular and charged at a higher price, compared with the traditional 2-D movies. Please analyze the impact of 3-D movies on The price elasticity of demand on 2-D movies? The total revenue of movie theater..
A large wood products company is negotiating a contact to sell plywood overseas. The fixed cost that can be allocated to the production of the plywood is $800,000 per month. For this situation, determine the optimal monthly sales volume for this prod..
Use graphs and charts to illustrate and explain the Overshooting Model of Exchange Rate Determination. Use causal chain diagrams and time series graphs to show the time series response of each of the variables in the model.
How closely does the labor market for the following type of worker approximate a perfectly competitive market? What, if any, are the major imperfections in each market?
Frank is a single-father with one child. The cost of child-care is equivalent to $150 per day. When Frank works, he receives an hourly wage of $20. In addition he has $150 of non-labor income per day. He sleeps 8 hours a day. Given these constraints,..
Observational equivalence. (Sargent, 1976.) Suppose that the money supply is determined by mt =c′zt−1 +et,where c and z are vectors and et is an i.i.d. disturbance uncorrelated with zt−1. et is unpredictable and unobservable.
A firm uses labor and capital (L, K), to produce an output. The hourly cost of labor is $10 and the hourly cost of capital is $50. Which combinations of labor and capital hours of use represent points on the firm's $100,000 Isocost line? Please show ..
While many domestic institutions play an important role in the globalization process, describe three fundamental policy measures that those countries need to promote in order to benefit from globalization. How would these policies be implemented? How..
The attribute that distinguishes money from other assets is that only money. What determines the acceptability of dollar bills as a medium of exchange? When economists refer to the role of money as a standard of deferred payment, they mean that
During a recession you would expect the difference between the 6 mo commercial paper rate and the yield on US 6 mo T-bill of the same maturity to: A. Be the same since their maturities are the same B. Increase reflecting the possibility of higher def..
Education (e.g., elementary and secondary education, higher education-undergraduate and graduate) b. Government (e.g., the Social Security Office, the Internal Revenue Service)
In March 2011 Chu, at age 50, decides to retire. As part of his employment contract with Computers Pty Ltd, Chu had agreed that he will not compete against the company in New South Wales for two years.
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