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What are the short- and long-term economic benefits and costs associated with our current high federal government budget deficits? Do you think the economic benefits outweigh the economic costs, or
Compare and contrast these explanations of vertical FDI: the strategic behavior approach and the market imperfections approach. Which theory do you think offers the better explanation of the histori
The effectiveness of monetary policy depends on how easy it is for changes in the money supply to change interest rates. By changing interest rates, monetary policy affect investment spending and th
Comment on this trade off between equity and growth. How would you go about resolving the issue if you were the president of a small, poor country?
Briefly state the basic characteristics of pure competition, pure monopoly, monopolistic competition, and oligopoly. Under which of these market classifications does each of the following most accur
Terrorist attacks foster instability and may affect productivity over the short and long term. Do you think the September 11, 2001, terrorist attacks on the World Trade Center and the Pentagon affec
How do we caculate the effects of real GDP on consumption expenditure and imports by using the marginal propensity to consume and the margianal propensity to import?
Which of the following are examples of Pareto-efficient changes? Explain your answers.
Suppose the price of a hotel room in San Diego averages $200 per night. At that price suppose 30,000 people stay in hotel rooms on an average night in San Diego. If the average level of consumer sur
Solve for market equilibrium mathematically. (hint, when solving, drop the s and d notations in Qs and Qs and use Q instead.) Describe verbally, the effects on equilibrium quantity and equilibrium pri
Explain the relationship between price elasticity and total revenue? How does price elasticity of demand affect a firm's pricing decisions? How does the availability of substitutes affect the price
Suppose the central bank wants to achieve an inflation rate equal to 1% and the current growth rate of real GDP is 2%. If the quantity theory of money holds, what should the Fed set the money growth
What are the additional taxable incomes from undertaking the project during each of yrs 1 through 3? What are the additional income taxes during each of yrs 1 through 3?
Cost of asset is $100,000, and salvage value used for depreciating purposes is $20,000. What is the difference in the current book value obtained using both methods?
What is the formula for the opportunity cost of X in terms of Y in this economy?
Do you think that this is the best path for the government to take? Why? Is there another way that the government could help with reducing structural unemployment?
Assume Cooper also needs to increase its level of inventory to support new sales and that inventory turnover is 4 times. What would be the total incremental investment in accounts receivable and inv
What effect will each of the following have on the supply of automobile tires?
Which of the following securities poses the greatest financial risk for the investor?
List at least one advantage and one limitation of international trade you encountered in the simulation. Define absolute and comparative advantage in your own words. Explain how absolute and compara
The owners of a successful restaurant want a loan for $50,000 to renovate the kitchen and expand the dining room. They expect that the extra tables will add between $2,000 and $5,000 to the restaura
How can you justify the existence of government-granted monopolies for public utilities such as natural gas distribution and electricity in the light of traditional economic argument that the more
Discuss examples of the puntuated evolution in the development of modern technologies and their relationship to catastrophe theory?
What will be the consumer's utility maximizing combination of goods A, B, and C? What will be the consumer's total utility?
What are the concerns of inflation? With the dollar falling, why are dollar denominated asset/investments less attractive? Why are countries whose currencies are pegged to the dollar thinking of allow