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In Akerlof’s lemons problem, with symmetric information, suppose that 5 cars are available in equal quantity and with quality levels 0, 1, 2, 3, and 4. Suppose the sellers have a reservation price of $2,000 per unit of quality, and the buyers value cars at $3,000 per unit of quality. There is more buyers than sellers, and all agents have no information about car quality. Will a market exist in this case? Is there an equilibrium price? Explain.
q1. lets think about two countries frugal and smart. in frugal people devote 50 percent of gdp to making new investment
Suppose utility had been leaner in wealth would this person willing to pay anything more than the actuarially fair amount for insurance.
A New York Times editorialist recently advocated a cut in the payroll tax.
If the nominal money supply is rs.200 and the price level is 1, (i) is the economy operating with inflationary or deflationary condition. (ii) Illustrate at what price level will there be simultaneous equilibrium in all markets.
How many times would Mexico's 2005 real GDP per person have to double to reach the United States' 2005 real GDP per person.
What is the importance of the political ideology as a key determinant of government policy toward Foreign Direct Investment (FDI)?
Using your answers above, why does the growth rate of real GDP differ depending on the base year? Explain how the technique of Chain-Weighted Real GDP alleviates this problem.
Explicate why the government expenditure multiplier is different from the tax multiplier.
q1. illustrate what are the effects of awards paid to heirs of workers judged to have been worked to death in japan on
Liberty Airways is considering an investment of $800,000 in ticket purchasing kiosks at selected airports. The kiosks have an expedited life of four years. Extra ticket sales are expected to be $60,000 per year at a discount price of $40 per ticket. ..
q.consider the application of the demand-revealing process to land assembly that we discussed in class. we defined d as
How can a compensation scheme designed to enhance worker motivation lead to this result.
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