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Household finances are similar in some ways to a nation’s international transactions.
A) Suppose a household consumes (spends) more than its income. What are 3 legal ways it can finance this deficit? Give an example of each.
B) How can a nation that runs a persistent Current Account deficit finance its excess consumption?
Frankie and Johnny can both earn a wage rate of $10 per hour and, coincidentally, both have $100 per week in non-labor income. Assume that both have T = 100 hours per week to allocate to leisure and work. Frankie chooses to work 40 hours per week. Us..
Illustrate what is the efficient price of water. Illustrate what are the quantities of water allocated to agricultural also industrial use.
If you sell with a price that is above or below the optimum price, what happens with the consumer surplus? Does your response depend on whether it is perfect competition or perfect monopoly?
Illustrate what must the central bank do to keep the peso cost of the dollar equal to Peso 3.4425 subsequent the speculators activities.
Assume an open, mixed economy (C+I+G+X=real GDP) and an MPS of .2 What is the multiplier? if the government spending (G) increases by $50B, how much will the real GDP increase? If taxes also increase by $50B, consumption (C) will fall by how much?
Dene producer surplus. Using a graph, illustrate producer surplus for a rm with an avoidable fixed cost. Why is it convenient to focus on producer surplus when analyzing policy changes?
Determine the minimum sample size to construct a 90% confidence interval for the population mean. Assume the population standard deviation is 1.2 years.
Skyscraper City has a subway system, for which a one-way fare is $1.50. There is pressure on the mayor to reduce the fare by one-third, to $1.00. The mayor is dismayed, thinking that this will mean Skyscraper City is losing one-third of its revenue f..
Discusss the effects to the equilibrium price level and GDP. Make sure to address consumption, disposable income, and aggregate demand in your answer.
Suppose that a firm's production function is given by U=K.33 * L.67, where marginal product of capital is QK = .67(K-0.67 * L.67) and MPL is QL = .67(K.33 * L-.33).
The deficit is the sum of yearly government debts. If the macroeconomic equilibrium is above the full employment equilibrium, the economy is in an inflationary situation. Autonomous consumption changes with the amount of a household’s income. Contrac..
Discuss why black Monday, the day when the djia declined more than 20% is not evidence against the efficient market hypothesis. What issues do critics cite when discussing why sarbanes-oxley has let to a decline in USA capital markets?
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