how the tax system contribute to development of Labuan IBFC?
In: Economics
Over the past seven weeks, we have explored different decades of US history and applied principles of macroeconomics to their outcomes. Take this time to share what you have learned with your classmates. In your initial post, respond to the following:
Choose one macroeconomic concept you applied in your final project of the years 2000-2010. Explain how it helps describe the economic outcomes of the decade you researched during 2000-2010.
In: Economics
In: Economics
2a. The reserve requirement is 20% and the FED buys 200 billion dollars of government securities. What is the maximum expansion possible in the money supply?
2b. (30 points) Explain how the change in the money supply in question 2a works its way through the economy to affect employment, inventories, GDP, and interest rates. Be sure to explain the causality chain, not just what happens to each variable.
In: Economics
Q. Why some governments resort to price ceiling and price floor for some goods and services? Describe three most important disadvantages of price ceiling and price floor? In what conditions do think that price ceiling and price floor may contribute to the welfare of people?
In: Economics
Q. What is a patent? If a patent serves as barrier to entry, why do governments issue patents?
In: Economics
Q. Elaborate the three most important characteristics of an oligopoly market. Give three examples of oligopolistic industries in Saudi Arabia.
In: Economics
What is the effect of an increase in the investment rate on the level of steady-state output per worker in the Solow model? Show in a graph.
In: Economics
Q. Why a firm remains in business even by earning zero economic profit? Elaborate the answer.
In: Economics
What is the relationship between bond prices and interest rates? Give an intuitive explanation of why this relationship exists.
In: Economics
QUESTION 8 - 9.3
Patents represent what type of barrier to entry?
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Barrier created by government |
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Brand loyalty |
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Input barrier |
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Economies of scale |
QUESTION 9 - 9.3
Which of the following is NOT a barrier to entry?
Diseconomies of scale |
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Input barriers |
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Economies of scale |
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Brand loyalty |
QUESTION 10 - 9.3
Suppose there are four firms that produce gluten-free breakfast cereal and each firm has 25% of the market share. What is the HHI for this market?
500 |
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1000 |
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2500 |
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6250 |
QUESTION 15 - 10.2
What strategy do cartel members use to coordinate their actions without using a formal agreement?
Implicit entry deterrence |
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Price taking |
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Tacit collusion |
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Marginal cost pricing |
In: Economics
Squeaky Clean and Biobase are the only two producers of chlorine for swimming pools. The market demand for chlorine is P=32-2Q, where Q is measured in tons and P is dollars per ton. The corresponding marginal revenue curve is MR=32-4Q. Assume that chlorine can be produced by either firm at a constant cost of $16 per ton. 1) If the two firms collude and act like a monopoly, agreeing to evenly split the market, how much will each firm produce and what will the unit price be? How much profit will each firm earn? 2) Does Squeaky Clean have an incentive to cheat on this agreement by producing an additional ton of chlorine? Explain. 3) Does Squeaky Clean’s decision to cheat affect Biobase’s profit? Explain. 4) Suppose that both firms agree to each produce 1 ton more than they were producing in part (1). How much profit will each firm earn? Does Squeaky Clean now have an incentive to cheat on this agreement by producing another ton of chlorine? Explain.
In: Economics
Question 9 (1 point)
Which change would by itself allow for more investment in a country?
Question 9 options:
A reduction of government salary payments matched with an identical increase of government expenditure on infrastructure in that country |
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An increase in domestic bank lending to foreign corporations |
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both of the above |
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none of the above Question 10 (1 point) Policy changes commonly suggested in response to recent international financial crises include Question 10 options:
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In: Economics
what is the community of practice for organization ?
and what are differences between it and the project
team ?!
In: Economics
Consider the standard Solow model with saving rate is 30%, and depreciation rate is 5%, Cobb-douglas production function with A = 1, α = 0.3.
Suppose initially the economy is at the steady state. If we increase the saving rate from 30% to 50% once for all.
Plot the first 20 periods of the following after the
change:
• capital sequence • output sequence • consumption
sequence
In: Economics