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Explain how foreign trade effect (also called the net export effect) could make the effects of an expansionary monetary policy (easy money policy) stronger.
How does Hollywood symbolize the "Americanization" of the globalization process?
How do labor market conditions affect a worker's bargaining power? Which labor-market variable would you look at to assess labor-market conditions?
What is your own reservation wage? Explain your answers to parts (a) through (c) in terms of the efficiency wage theory.
How will the fall in consumer confidence affect consumption, investment, and private saving? Will the attempt to save more necessarily lead to more saving?
Suggest a policy mix to achieve each of the following objectives. Decrease the fiscal deficit while keeping Y constant. What happens to i? To investment?
Discuss the likely differences in driver behavior under this plan compared to a plan in which drivers are paid by the day.
Why might it be a good idea to compensate those teaching classes in bookkeeping based on their students' performance on standardized tests?
Do you agree? Why, or why not? Would you agree with a qualified version of George's claim? If so, what qualifications would you add?
Fifty residents of a college dorm all like espresso. An espresso machine costs $1,000. What could Eugene do to improve his chances of success?
Give three examples of common property resources other than the ones listed in the text. In each case, how is overuse addressed in practice, if at all?
What are the advantages and disadvantages of this proposal? Is it workable? How does it compare to a gasoline tax?
Find the socially efficient level of innoculations, the competitive equilibrium, the deadweight loss created by the externality, and optimal Pigouvian subsidy.
What agreement will the mill and the farmer negotiate if the mill has the right to pollute? What if the farmer has the right to clean water?
Find the socially efficient level of test preparation, the competitive equilibrium, and the deadweight loss created by the externality.
hen Sam Walton started Wal-Mart in 1969, he decided to open his large discount stores in relatively small towns. Why was Sam Walton's plan a good idea?
In 1983 Congress passed the Orphan Drug Act, which gave special tax credits. Why might this legislation increase aggregate surplus? Why might it lower it?
If the firms could curtail their R&D efforts, each could earn a greater profit. Would you expect that sustaining this type of collusion would be easy or hard?
Suppose that in the repeated Bertrand model of Section 19.5, Joe and Rebecca take. What is the largest weekly interest rate when price changes take a month?
What effect would you expect the EPA's announcement to have on their ability to sustain the monopoly price?
At what monthly interest rates can firms sustain monopoly price by charging the monopoly price if no one has yet undercut it and $50 if someone has undercut it?
The marginal cost is $0.30 per can. Find the Nash equilibrium prices. How does a change in D affect competition? Why?
What effect will those coupons have on the amount of the product the monopolist sells in May, the final cost per unit to consumers, and the monopolist's profit?
What is the profit-maximizing number of nurses for the hospital to hire? What will the nurses' wage be? What is the deadweight loss?
The South African firm De Beers was responsible for well-known ad line A Diamond Is Forever. Why would only a near-monopolist such as De Beers omit its name?