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When inflation occurs some economic agents gain and some lose. Who would gain and lose if deflation occurs? Why? What will happen to interest rates and investment according to Keynesian and Classical/ Monetarist theories? Is inflation still a possible threat? What could cause a rise in inflation? Suggest some possible scenarios.
Use several alternative discount rate values (1% to 10%) to investigate the sensitivity of the present value of net benefits of the dam in exercise (1) to the assumed value of the real discount rate. Determine the "breakeven" value of the discount ra..
In the Wall Street Journal article included in this week's lesson, what change in the small drugstore chain's product differentiation strategy has helped lift profitability? What has been responsible for the success of this strategy (who comprises th..
Which of the following is NOT a possible way for a price-fixing scheme on potatoes to fall apart? Which of the following determine an individual's wage? In 2011, Google introduced its social networking site, Google+. Even though Google+ is cleaner an..
Determine whether the following production function exhibits constant, increasing, or decreasing returns to scale
An indifference curve involving two goods identifies the:
Suppose that we start in a situation where the expected and actual inflation is equal to the Central Banks inflation goal and that the production is on the natural level. Suppose now that the consumers are becoming more pessimistic about the future i..
Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. As well, assume that v=2 and that the inflation rate last period was 2%. Assume the natural rate of unemployment is 5.5%. The Sequester is ..
Gail works in a flower shop, where she produces 10 floral arrangements per hour. She is paid $10 per hour for the first eight hours she works and $15 an hour for each additional hour she works. What is the firm’s cost function? What are its AC, AVC, ..
what is the opportunity cost of producing Toyotas in each country. Who has the comparative advantage in producing Chevrolets.
What is the best definition of the basket of goods and services included in the consumer price index?
Good People is currently selling beer for $3 per pint. The marginal cost of a pint is $.50. If we raise the price of the beer to $5, what percentage of customers must be maintained to ensure Good People at least stays even with the proposed price inc..
The following statement is given, “It’s not true there are substitutes for anything. If you want omelets, you need eggs. There are no substitutes for eggs in an omelet.”
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