1. Explain revealed preferences. What are neoclassical
economists trying to achieve by creating this concept? Are...
1. Explain revealed preferences. What are neoclassical
economists trying to achieve by creating this concept? Are they
able to achieve their objective? (word count: 300 words).
Explain what problems are
encountered in trying to achieve cost effective results occur
if
"command and control" environmental
standards regulations (all polluter must keep emissions below a
fixed ceiling) are employed by
regulatory agencies.
1.
Neoclassical economists’
champion unfettered markets (free from government intervention).
What explains these strong free market convictions, and why do
critics feel they are
ill-founded?
2.
Why
is the practice of environmental valuation being criticized
for potentially undervaluing nature? Is it better to have, albeit
imperfect, environmental values as opposed to having no
environmental values at all?
3.What
is meant by discounting? By way of
example
explain why critics of discounting regard the practice to run
counter to the principle...
Neoclassical economists believe that only unanticipated
inflation has real effects. Explain this using the AS/AD-framework.
In light of this discuss the desirability and feasibility of
government stabilization policy.
Explain the neoclassical theoretical argument that
competitive capitalism should automatically self-adjust to achieve
full employment equilibrium. During the Great Depression, real wage
did not increase. Why was this economic fact in contradiction with
the neoclassical (and Keynes’s) theory of employment? How was
Keynes’s theory of interest rate and saving different from the
neoclassical one? Why did Keynes believe that there were situations
where monetary policy would be ineffective to bring the economy out
of depression?
Explain to a friend or relative how you would use the TVM
concept to achieve their desired retirement amount. How much would
they need to retire? How would you develop a savings plan using
that number? Use Excel to calculate and explain the numbers when
posting to the forum. Include the interest rate and investment.