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Consider a two-period lived representative agent for an economy, whose preferences for consumption are described by the lifetime utility function U = lnC_1 + lnC_2 The output of the economy in the two periods are 50 (Y_1) and 200 (Y_2), and r is 5%.
a) Does the economy run a trade balance deficit or surplus in period 1? How about period 2? Explain your answer with a graph
b) How would your answer in a change if the output in period 2 becomes 30 only? Explain your answer with a graph.
Joe won $365,000 a year for life in the state lottery. Use the labor-leisure choice analysis to answer the following. show how Joe's lottery winnings affect the position of his budget line. Joe's utility function for goods per day (Y) and hours of le..
Why are some states considered to be "developing"? Practically speaking, what does that look like?
(a) Compute the unit manufacturing cost for the daytime shift. (b) Would adding a second shift increase or decrease the unit manufacturing cost at the plant?
Using appropriate empirical evidence, discuss the relevance of this statement to the incidence of poverty in a Caribbean territory of your choice.
Pocoyo bakes cookies also Pato grows vegetables. In which of the subsequent cases is it impossible for both Pocoyo also Pato to benefit from trade.
"Other things equal, which reduces competition in an industry? "
Based on what we have learned so far regarding the macro-equilibrium and fiscal policy, critically discuss the claim by some economists (like Paul Krugman) who have suggested that austerity measures have amplified the economic slump in Europe (Greece..
The world of finance can be divided into three broad areas, the banking system, financial management and investments/financial markets.
Suppose that you are a legislator in New York considering whether to exempt people using Airbnb from the rule that rooms in private homes have to be rented for at least 29 consecutive days. What considerations would you take into account in making a ..
q.describe the following terms in your word.bull gross domestic product gdp bull real gdp bull nominal gdpbull
Participate in a discussion with your classmates regarding how monetary policies affect our lives. Utilizing the knowledge that you have accumulated during our course, and by reading or watching the current news, determine the monetary policy issues ..
If an investor wants a portfolio risk with .1, then what proportion of her portfolio wealth should she invest in the stock, and what proportion should she invest in the risk free asset with Rf=.07? What will be her portfolio expected return? Standard..
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