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Imagine that an economy produces two goods, hot dogs and baseballs. In the year 2000 the economy produces 20 hot dogs and 15 baseballs, and the prices of hot dogs and baseballs were $2 and $5, respectively. In the year 2001 the economy produces 25 hot dogs and 20 baseballs, and the prices of hot dogs and baseballs were $3 and $6, respectively. Note: Year 2000 is the base year.
Calculate NGDP for 2000.
Calculate RGDP for 2001.
What is the economic growth from 2000 to 2001?
Refer to question one. Suppose we hold the nominal exchange rate constant now. Would we expect a real depreciation or appreciation of U.K.’s currency? Why? What types of exchange rate regimes may this describe?
Suppose that families paid substantial dowryat marriage. What effect would this have on desired family size?
Suppose that a firm’s production function is Q = min{K, L}. Currently, the wage is w = 8 and the cost of capital is r = 8. What is the minimum cost method of producing Q = 40 units of output? Suppose that wages fall to w = 4. Keeping total cost the s..
What is the best entry strategy in Germany? Can you you me an example case?
Define negative rights and positive rights. Give an example of negative right and positive right that are in conflict.
You own 2,200 shares of stock in Avondale Corporation. You will receive a $1.60 per share dividend in one year. In two years, Avondale will pay a liquidating dividend of $60 per share. The required return on Avondale stock is 20 percent. Ignoring tax..
Lucas Construction just purchased a new track hoe attachment costing $12,500. The CFO, Mr. Cameron Lucas, expects the implement will be used for five years when it is estimated to have a salvage value of $4,000. Maintenance costs are estimated to be ..
What happens to the price of something when there is little to no demand?
Why do individual unit cost improvements decrease for each individual added unit of capacity?
One reason why prices tend to be less flexible in oligopoly markets than in other market structures is because: A) Coordination tends to stabilize prices B) According to the kinked-demand model, a firm will tend to become worse off if it increases or..
Labour Demand with Perfect Competition in the Labour Market and Monopoly in the Output Market in Short Run.
Amazon’s new tablet computer, the Kindle Fire, has slim margins at its $199 retail price. Admittedly, this product is trying to change the way we read books. Categorize the listed costs as variable or fixed and calculate a contribution margin percent..
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