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Question 1: What is the difference(s), if any, between the unemployment rate and the natural rate of unemployment? Discuss.
Question 2: The expenditure approach (the sum of all spendings) to measuring the value of the nation's output (GDP) is equivalent to the income approach (the sum of all payments to factors). Discuss and illustrate with examples(s) where necessary.
Question 3: Real GDP is the same as nominal GDP? If yes, why? If no, why? Discuss
Question 4: Does GDP provide an accurate measure of the well-being of the population in a country? Yes or No. Discuss and offer examples where necessary.
Bond Valuation. Consider this bond offered by the Government of the Russian Federation: the Face Value of the bond is $1,000, its maturity is 4 years from today, the coupon rate is 5%, and the coupons are paid annually. Assuming the market interest r..
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5. Eleven sellers are also willing to sell at the same prices. What is the equi..
Fuel Prices Could Squeeze Cheap Flights Airlines are having difficulty keeping prices low, especially as fuel prices keep rising. Airlines have raised fares to make up for the fuel costs. Explain how an increase in fuel prices might cause an airline ..
Robert Johnson, manager of a Kentucky Fried Chicken franchise, is thinking of introducing barbecued chicken in the product line. Its profitability will be based on the fact that the barbecue sauce will cover up the lack of freshness in leftover chick..
In our text, there is an example of randomized block design in the form of an “Air Traffic Controller Stress Test” that begins on page 570. Do you think that the Air Traffic Controller Stress Test could have been formulated as a factorial experiment?..
At what output level would the monopolist produce? (C) At what output level would a perfectly competitive firm produce?
An important reason for the economic regulation of industry is the presence of a natural monopoly. A. Briefly explain what is meant by a natural monopoly. B. How is a natural monopoly efficient in one way but inefficient in another? C. Discuss two wa..
What would be the total profit of the firm if it sells the entire output at a cost of Rs. 60 per unit.
How will this affect the firm’s profit maximizing use of coal and output? d) What is the advantage and the disadvantage of placing a tax on the burning of coal to reduce global warming?
What were the strengths and weaknesses of the system of central planning in the Soviet Union? Was the decline of socialism in Eastern Europe the result of purely economic facture? What role was played y politics and culture?
Proper hygiene such as regular hand washing can greatly limit the spread of many diseases. How may this suggest a role for public interventions? What kinds of interventions may be possible? Suggest three distinct types of possible Intervention.
If interest is compounded at 15% per year, how long (i.e., the number of year-long periods) will it take for $50,000 to accumulate to $66,125? Hint: you can check your work using the FV function in Excel with the annual payment set to zero, since we ..
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