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Derive an algebraic expression for the IS curve for this model and plot it to scale. Compare it with the IS curve with the traditional consumption function. Which is steeper, why?
Suppose that we have a consumption function of the form. What is the short-run marginal propensity to consume? What is the long -run marginal propensity to consume?
The yield on 2-year marketable CD's is 7% and this investor purchased the 1year T-bill, what must (s)he expect to happen to short term interest rates over the coming year?
How will the sunk and nonsunk fixed costs affect the firm's decisions as it tries to maximize profit in the short run?
In 2010, The exchange rate between US dollar and Chinese yuan is 1:6.8. Which currency depreciates and by how much? Which currency appreciates and by how much?
The present day and the potential impact on the stock price of each company. Indicate how this influences your investment decision related to the company.
What will be the impact of this quota scheme on the price and output of the good in question? Explain fully. What will be the equilibrium price of a quota coupon? Explain fully.
How does a natural monopoly become regulated? What is the way that the pricing should take place for the monopoly? How much profit should be allowed to be made?
What are the three types of mergers that firms can do? Classify the following possible mergers between Starbucks and coffee growers, Bank of America and Fleet Bank,
What should the role of the government in terms of the Internet taxation and Internet content? Based on which of the roles of government?
If there is a merger between 2nd and 4th largest firms, with the following market shares: 1st: 20%, 2nd: 10%, 3rd: 5% and 4th: 4%. Should the merger be allowed based on the Herfindhal Index? Why?
Give examples of mergers of the vertical, horizontal and conglomerate types. How are the natural monopolies different than the regular monopolies? Should there really be this difference?
You may work more hours because of this cost-of-living increase. Is this response predominantly an income effect or a substitution effect? Explain thoroughly.
What would be the effects of sequestration in the fixed-price Keynesian model? Show graphically and explain. What would be the effects of sequestration in the classical model?
Of the two theses about world hunger-the overpopulation and lack of production thesis and the political-economic thesis-which do you most subscribe to? Explain.
Professor P choose so as to maximize her payoff function? Could Professor P achieve a higher payoff if she were able to use a wage schedule of more general functional form?
When will RoM's dividends surpass those of Bovine Cash? Hint: you may use the doubling rule to give an approximate answer. What is the PV of all future dividends? Compare to ii) and explain briefly.
XYZ stock is traded "ex-dividend", i.e. the right to year t's dividend belongs to the owner of the share at the end of year t-1. What is an XYZ share worth in year 3?
Find and analyze three distinct current event articles that interest you and convey an economic concept or principle. How do changes in demand affect prices?
what would be the impact of MRRT on the Australian iron ore industry? In your answer, please comment on the structure of the industry, the type of regulation used.
Suppose that firm A and firm B can form a joint venture to pursue either or both of their R&D programs. What is the expected profit of simultaneously pursuing both programs?
Find the contingent demand functions for labor and capital. Using your answers in (a), find the underlying production function.
Lets Mr. A choose the number of hours that he wants to work. What values of a and b should Professor P choose so as to maximize her payoff? What are her and Mr. A's payoffs?
Now suppose FC is not zero. What is the lowest FC at which firm 1 does not have to engage in strategic entry deterrence in order to keep firm 2 out of the market?
How might the answer change if firms are playing this "game" repeatedly over many periods? What are some strategies that firm two can use to gain credibility?