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What was the effect of the policy switch on the one-year interest rate? What does a declining spread imply about expectations of financial market participants?
What do you expect would happen to stock prices if the risk premium decreased unexpectedly? Explain in words.
Explain why an inverted (downward-sloping) yield curve may indicate that a recession is coming. What does a steep yield curve imply about future inflation?
Discussion: Technological progress, agriculture, and employment. If all sectors start having the productivity growth that took place in agriculture.
Discuss how the belief in the New Economy, combined with the increase in stock prices, affected consumption spending.
What is the present discounted value of labor income at the beginning of life? Suppose there are n people born each period. What is total saving in the economy?
What is the maximum you should be willing to pay in tuition to attend this professional school?
What is this consumer's human wealth? By how much could this consumer increase consumption now and in the future?
What happened to stock prices on the day of the announcement? To what degree do you think financial market participants were surprised by FOMC's announcement?
Explain the trade-offs associated with the use of uniforms. What were the benefits? What were the costs?
Explain why the price of grooming licenses was zero. Illustrate your answer with a complete graph.
What is the equilibrium price under monopolistic competition? How many lawns will be cut in total, and how many firms will be in the market?
Suppose both firms provide low-price guarantees. Draw a new game tree and predict the outcome of the price-fixing game.
Waikiki Beach has two hotels, one run by Juan and a second run by Tulah. Draw a game tree for the price-fixing game and predict the outcome.
Hustle and Speedy provide transportation service from downtown to the city airport. Draw a game tree for the price-fixing game and predict the outcome.
To make the advertisement worthwhile, how many of the original buyers must each persuade just one other person to buy the book?
What is Corporate Social Responsibility (CSR)? What are the various strategic approaches to CSR?
How would this change affect economic growth? what groups in society would benefit from this change? what groups might be hurt?
Illustrate the short-run effect of a fall in aggregate demand using an aggregate-demand/aggregate supply. What happens to total output, income, and employment?
Give the formula for Valerie's MRS of x for y. This is done in three steps: (i) Give the formula for her MUx.
Define the axes as concerts per month and movies per month. For each graph, label the direction of preference with an arrow.
Why does the elasticity of demand for a good with respect to its own price decline as we move down along a straight-line demand curve?
In the market for home heating consumers typically have several options. Discuss the context in which your electricity provider is a monopolist?
What is the marginal revenue product of this Web designer? What type of returns to scale does this example illustrate?
What are the benefits of CSR? What is your opinion about the current amendments made regarding CSR initiatives in the Companies Bill?