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a. Suppose that, for a given year, national saving in a country (an open economy) equals 100, private consumption equals 50, and government consumption equals 20. What is the level of output in this country in this year? And what about the level of investment?
b. Consider the following statement: "A country is better off running a current account surplus rather than a current account deficit." Do you agree or disagree? Explain.
The duty of a coroner is to: When a piece of real property (land and its improvements) is transferred, who records the deed of transfer?
Why is the growth of per capita real GDP a better measure of economic growth than the growth or real GDP? What is the level of output after four years of initial output equals $1000 and the economy grows at a rate of 8 percent a year.
Consider a Cournot duopoly with the inverse demand p = 130 ? Q. Both firms have constant marginal and average cost MC = AC = 10. Find the Cournot-Nash equilibrium output and profit of each firm. Calculate the consumer surplus and DWL.
Suppose the government decides to raise the gasoline tax as a way of reducing air pollution and traffic congestion to their optimal levels. Which of the following describes why Pigovian taxes, such as gasoline tax, are unlike most other taxes?
Suppose you have just bought a new house and are considering the installation of 10 compact fluorescent bulb (CFB) fixtures instead of 10 conventional incandescent lighting fixtures (Which cost a total of $500) typically installed by the builder.
To determine whether the overnight loans rate should be raised, lowered, or left unchanged, the bank of Canada does all of the following except
Consider a homogeneous good market with the following market demand curve: Q = 8 − p, 0 ≤ p ≤ 8 = 0, p > 8. Two firms produce output at constant marginal cost which may be different. Derive the Nash equilibrium outcome and the profits of the two firm..
Prove that this production function exhibits diminishing marginal product in both and . This is not the same thing as decreasing returns to scale.
In current dollars, what is the order-of-magnitude estimated cost of a plant with 50% more capacity?
Explain how each change would affect bank reserves, the money supply, interest rates and aggregate demand and how this would help improve the economy.
Two firms produce identical, substitute goods. Market inverse demand is P=150-Q. Firm 1 has costs c(q1)=c1q1 and Firm 2 has costs c(q2)=c2q2. Find the Nash equilibrium in quantities (cournot competition) Prove the answer is a Nash equilibrium
An increase in buyers' incomes
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