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You've read about rational expectations. This model suggests that people use all available information to make forecasts and alter their behavior accordingly. However, some economists think this view of the economy is inaccurate. Does this model seem accurate to you? Do you (or others you know) use the information available to make future plans? Do you think businesses or investors do? Explain your answers.
A firm's production function is qi = 0.2*Ki^(0.6)Li^(0.4). The wage rate in this area is w = $15, and the cost of capital is r = .05. Find the firm's short run cost function, if Ki is fixed at $100,000. If the good is exported around the world at a p..
Compared to a perfectly competitive market, in a monopoly market
Japanese business culture is somewhat different from that of the U.S., yet both U.S. and Japanese companies are very successful and dynamic competitors in the global economy. You will find a brief overview of Japanese business practices in Doc Sharin..
Your manager just asked you to join a meeting in progress to speak for five minutes about a build versus buy decision the company is about to make. Describe how you would spend those five minutes in presenting the most important element of the dec..
The Saudi Riyal remains stable in comparison to the US Dollar. What are the reasons for this stability? Explain with examples. Do you expect that current revenue and expenditure patterns will affect the value of the Saudi Riyal in relation to the US ..
A few years ago, a construction manager earning $70,000/ year working for a regional home builder decided to open his own home building company.
Explain how shortages/surpluses are eliminated in a free market system. You can use graphs and specific examples in your analysis. Graphs don’t count towards the word limit. Explain the difference between scarcity and shortage.
Assume that the pool of utilized textbooks grows further during the second year of the latest edition
For each of the following goods, give your best estimate of its most likely degree of rivalness and (relative) exclusion cost, using the definitions of these variables and the information in the course notes on externalities and public goods.
One component of the Patriot Act of 2006 was the "Combat Methamphetamine Epidemic Act", which prohibited the over the-counter sale of cold medicines that contain pseudoephedrine (which is commonly used to make meth). Ceteris paribus, what is a likely..
Describe the different ways in which the government may intervene in the forex market. Why does the government have the ability to intervene in this way.
Consider how the economy may be influencing your life. What has the most impact on you? Has a similar economic condition happened in the past? What is the likelihood it could happen again? What should you do to prepare for the next period of economic..
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