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1. What do we mean by Productive Efficiency and what do we mean by Allocative Efficiency?
2. Briefly Discuss the Difference between these two concepts!
3. How does Perfect Competition lead to Allocative and Productive Efficiency?
Regarding inflation, as I mentioned earlier, the recent effects of lower prices for crude oil and for imports on overall inflation are expected to wane during this year. Explain why the FOMC is concerned not only about actual recent inflation rates a..
Calculate the dollar rate of return and the real rate of return on following assets. A painting whose price rises from to in a year if the painting’s price rises from $150,000 to $200,000 in a year and prices of other goods and services rise by 10%.
Suppose the current price of oil is $120 per barrel. At its next meeting, OPEC decides to increase crude oil production by 10%. Assume that OPEC accounts for 40% of the world's supply of crude oil and no other nation changes its oil production during..
Suppose that there is a unit mass of consumers who are uniformly distributed on the segment[0,1]. Two firms are located on the line and sell identical products.
An electronics manufacturer is considering the purchase of one of two types of laser trimming devices. The sales forecast indicated that at least 8,000 units will be sold per year. Device A will increase the annual fixed cost of the plant by $20,000 ..
An economy produces hot dogs and hamburgers. If a discovery of the remarkable health benefits of hot dogs were to change consumers’ preferences, it would:
An alternative has a discounted project cost of $4,185,000 with no salvage value. The estimate was in constant year dollars and the discounting used mid-year factors. While the period of analysis is 5 years, the alternative only provides benefits for..
Explain how can tax cuts help revive the economy.
Identify the causes of the crisis, the steps the private and public sector took to resolve it, and what leaders should do to keep it from happening again.
Explain how more would cumulative spending increase as a result.
Any idea why diminishing marginal return ultimately occurs in the production process?
Loan has a long amortization period with a fixed interest rate. Will the interest paid in the later years be equal to the interest paid in the earlier years?
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