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Kenyan economics expert James Shikwati says the aid to Africa does more harm than good. He is an avid proponent of globalization and argues that Western development policy in Africa is disastrous. Why would Shikwati be opposed to foreign aid in support of free trade?
Explain the difference between absolute and comparative advantage. Explain the law of increasing (opportunity cost). What causes cause to increase? What factors or events could cause an inward shift of the production possibilities curve?
How do bubbles challenge the classical theory of asset prices? Are bubbles necessarily inconsistent with the absence of arbitrage opportunities? Explain in detail. What are the social costs of bubbles? How did Shiller test the classical theory? What ..
Affirmative action is one of the most controversial topics in employment law. How affirmative action is often presented in the media? How similar is that portrait to the one presented in Johnson v. Transportation Agency, Santa Clara County ? When are..
Suppose you own a house in Mobile, AL. Your house is currently worth $200,000. Suppose there is a 5% chance that a food destroys your house, in which case it will be worth $0. You have $50,000 in your bank account.
Compute GDP for Joe using both the product and income approaches and show how they must agree.
When entrepreneurs are investing their own money, how do they decide which projects they should undertake? When political decision-makers allocate the funds of others (taxpayers), how do they decide which projects to support? Explain.
Explain the connections between opportunity cost and the production possibilities frontier.
How may you apply what you learned about supply and demand from the simulation to your workplace or your understanding of a real-world product with which you are familiar?
What information would a government needs to increase the probability that its industrial policy would promote long-term self-generated economic growth.
Consider a small open economy in the short run where the government imposes trade tariffs on corn.
Several questions in this problem set are based on the 8/19/12 Wall Street Journal article "Cartel Pushes Up Price of Rubber." This article is at the end of the module on Antitrust Policy. Stopping production of rubber-based products and diversifying..
Suppose you are hired by the Martin Guitar Company as an economic consultant. You estimate the demand to be Q=8000-2P. Suppose the supply of Martin Guitars is given by Q= -2000+3P. Suppose a per-unit excise tax of $40 per guitar is levied on the cons..
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