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1. What is a small open economy?
2. Why is it appropriate to use a small open-economy model to explain events in the United States?
3. In the second model in this chapter, what are the determinants of the current account surplus, and how does each of these determinants affect it?
A mechanical engineer who recently graduated with a master's degree is contemplating starting his own commercial heating and cooling company. He can purchase a Web Page design package aimed at delivering information only for $1,000 per year.
Use the production and price information in the table to calculate nominal GDP for 2011.
Regress LGEARN on S, ASVABC, MALE, ETHHISP and ETHBLACK using your EAEF data set. Repeat the regression, adding SIBLINGS. Calculate the correlations between SIBLINGS and the other explanatory variables.
Determine the steady state levels for Tobin's q, capital, investment, and consumption. Determine the effects of a permanent productivity increase (i.e. ΔA > 0).
Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD: Find the price and quantity that would maximize social welfare
Is the provision of public good ancient (according to the Samuelson rule)? Explain why or why not.
Deficit reduction as a prisoner's dilemma game Suppose there is a budget deficit. It can be reduced by cutting military spending, by cutting welfare programs, or by cutting both. The Democrats have to decide whether to support cuts in welfare prog..
What is the anticipated benefit/cost ratio if the interest rate is 6 %, the service life is 10 years, and the salvage value is $5,000?
Southwest Airlines' cost to fly one seat one mile is 7.38¢ compared to 15.20¢ for USAir (New York Times, August 20, 2002, C4). Assuming that Southwest and USAir compete on a route, use a graph to show that their equilibrium quantities differ.
State whether each utility function displays risk neutrality, risk aversion or risk love.
Analyze how does the bank's finding relates to economists' traditional focus on what people do, rather than what they say they will do.
Demand for discount tickets is unlimited, while demand for full-fare tickets is evenly distributed between 11 and 30 seats. How many seats should be protected for full-fare passengers and not authorized for release to the discounted $250 segment?
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