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Oceana is small country. Using the open-economy macro model, trace the effects of the following actions on savings and investment in Oceania and Oceania’s trade balance. Make sure you explain the transmission mechanism of these effects with graphs.
a. Oceana reduces the taxes
Express the retailer's monthly profit from the sale of the cameras as a function of the selling cost. Estimate the optimal selling cost.
What is an externality? Give an example of a positive externality and an example of a negative externality. What is the difference between private costs and social costs? From an economic perspective, is it sound policy to pursue a goal of zero pollu..
An investment has a beta of 1.0. The risk free rate is 2% and current market return is 8%? What is the required return?
Suppose that the demand in a particular industry is given by Qd = 500 − 2P. When the market price in the industry is $50 per unit, total demand in the industry is _________. Furthermore, assume that the entire market consists of four firms that share..
Medical costs are once again rising rapidly, forcing health care back into political prominence. This issue direct affects you as a student, family member, employer, and/or employee. The problem of medical costs is so pervasive that it underlies thre..
Suppose the marginal benefit of writing a contract is $50, independent of its length. Find the optimal contract length when the marginal cost of writing a contract of length L is: What happens to the optimal contract length when the marginal cost of ..
Assume that you have an app on your smart phone that allows you to walk up to any item in the supermarket, have your phone recognize it, and then display all the necessary information about the product. Imagine that the app even tells you where and h..
Illustrate what effect does the income tax have on consumption and labor supply? Explain your results in terms of income and substitution effects thoroughly.
What is the SAP (structural adjustment program)? What are the IMF-imposed "conditionalities"? Why did the IMF and World Bank imposed them upon Third World countries during both their debt crises and financial crises?
while the foreign demand for the firm's product is P = 10 - 2 QF . Given this information, the total demand Q (where Q = QD + QF ) that this firm faces satisfies
Suppose Frank is a monopolist in the garden gnome market and is producing his profit-maximizing level of output. Suppose further that at this level of production his average total cost is $150, his average variable cost is $130, and the price of one ..
Consider an individual whose utility function is U = X0.5Y0.5. If she consumes 3 units of X and 4 units of Y, then some level of utility will be experienced. If the individual instead consumes 2 units of Y, how much of good X must she consume in orde..
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