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Question: In a modern economy, who controls the creation of money?
Who profits from the creation of money?
What issues arise in using this system to regulate the supply of money to the economy?
How could the right to create money be changed to finance the public (or community) sectors?
What is the expected value of the extended warranty assuming it is replaced in the first 2 years?
a) What is the principle of minimum differentiation and how does it relate to the free-rider problem we have in society?
A risk-neutral consumer is deciding whether to purchase a homogeneous product from one of two firms. One firm produces an unreliable product and the other a reliable product. At the time of the sale, the consumer is unable to distinguish between the ..
If the demand for housing falls, reducing planned investment by $75 billion, what is the effect on national income and output (GDP) (the consumption function is c = 50 + 0.7 (yd)) Wouldn't this answer just be GDP will be reduced by 75 billion? I am n..
Assume that no banks hold excess reserves, and the public holds no currency. If a bank sells a $100 security to the Bank of Canada, explain what happens
A farmer uses three inputs to produce vegetables: land, labor, and capital. The production function for the farm exhibits diminishing marginal rate of technical substitution. What Happens when labor and capital increases by 5% and land remains fixed?
How does a decrease in govt. expenditure in purpose of controlling growing budget defecit effect the equilibrium GDP?
There are 2 firms consider here from 2 different industries. A firm in industry A has MC of production = $100 and they know from historical experience that their Lerner index is 0.3. Articulate which firm is more likely to earn excess profits in the ..
This might be interpreted as an upward shift in the consumption function. Explain how does this shift affect investment and the interest rate.
Do you agree? Discuss some of the advantages and disadvantages of outsourcing.
In the past year, the price of dry-cleaning solvent doubled. More than 4000 dry cleaners across the country disappeared as budget-conscious consumers cut back. This year the price of hangers used by dry cleaners is expected to double. Explain the eff..
Provide two specific real-world examples of GDP limitations. Given the limitations of GDP, is GDP a reliable indicator of the health of the U.S. economy? Explain why or why. Be sure you discuss the intended uses of GDP, that is, why the U.S. Departme..
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