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During the 1980s, the U.S. Congress imposed a high sales tax on yachts, figuring that the rich could afford to pay for this luxury. But so many jobs were lost in the boat-building industry that the measure was finally repealed. What did Congress get wrong in imposing this tax? Briefly discuss.
What is the effect of an increase in Government Spending on Bond Prices in the Short Run? (To improve your understanding of the IS-LM model, try to answer this question by showing the equilibrium change in the Goods Market, the Money Market, and the ..
A firm has a demand function P = 200 – 5Q and a cost function: AC=MC=10. What price, quantity, and corresponding profit occur if this a purely competitive market? Determine the optimal price, quantity and economic profit for the firm if it is a pure ..
You are the manager of a firm that receives revenues of $60,000 per year from product X and $70,000 per year from product Y. The own price elasticity of demand for product X is -2.5, and the cross-price elasticity of demand between product Y and X is..
What are the difference between average stock returns and risk-free returns.
Consider the Cobb-Douglas production function: Y = zK^a N^1-a where Y is output, z is total factor productivity, K is capital, N is labor employed, and is the share of capital in the production function. Write down the problem of the firm using the C..
For which of the following stock price indexes will a firm with a high market value carry more weight?
Describe the major changes taking place in selling and the forces causing these changes. Identify as many issues as you can and attribute changes to whether they are innovation based or created as a result of progress in our understanding of marketin..
Illustrate what is the reason the productivity also real incomes of workers in the industrially advanced economies have risen historically partly.
Provide a graph and explanation of the Argentine crisis of 2001-2002. Include a discussion of the “vicious circle” into which Argentina descended as it defended its peg to the US$, including the role of the IMF and the government budget deficits. Why..
“Rising oil prices will lead to decreased employment, lower wage rates and decreased real money balances.” Comment on this statement with the help of an AD-AS diagram and explain the short-run and long-run adjustment processes.
Explain how that factor can cause productivity figures to be misleading. Is there another way to compare the two plants that would be more meaningful?
What is the defender's lowest EUAC? What is the challenger's minimum cost life?
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