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What are economies and diseconomies of scale? What does the minimum efficient scale indicates?
Explain the marginal productivity equalization test and discuss the role of the total factor productivity (the parameter A in the production function) to solve the seeming puzzle presented in the data. How big are these productivity cross-country ..
What is is the boundary between the combinations of good and services that can be produced and the combinations that cannot be produced
Illustrate the perfectly competitive market for root beer in chaseystan has achieved long run equilibrium.
A manufacturing firm has received a contract to assemble 1000 units of test equipment in the next year. The firm must decide how to organize its assembly operation. Skilled workers, at $33 per hour each, can individually assemble the test equipment i..
What should Honda and Toyota do to manage this short term average price increase.
Of all random variables taking the just values 1, 2, 3, 4, 5, the one with Pr{X = 1} = 1/2 and Pr{X = 5} = 1/2 has maximum standard deviation.
Would you expect expansionary fiscal policy to make interest rates in the economy higher, lower or unchanged? Sketch a diagram of the market for borrowing and lending in the economy to illustrate your answer. How will the affect on interest rates tha..
Discuss the method of quantitative easing used by the Federal Reserve during the most recent U.S. recession. Discuss any praise or criticism of this action.
Construct time series plots of real GDP, the ratio of consumptionto GDP, and the ratio of investments to GDP. In these plots, does what you see conform to the predictions of the Solow growth model? Explain why or why not.
You’re a commodity trader and you’ve just heard a report that the winter wheat harvest will be 2 billion bushels, a 40 percent jump, rather than an expected 30 percent jump. What would you expect would happen to wheat prices?
Suppose households hold $0.30 in currency for every $1 they have as demand deposits (checking accounts). Also, banks hold 20% of their deposits as reserves. If the Federal Reserve buys $10 of government bonds from banks, by how would would the follow..
Increasing the government budgetary surplus or decreasing the deficit is desirable in a period of:
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