Questions
Analyze the effects of the following, on required levels of investment, both in the short run...

Analyze the effects of the following, on required levels of investment, both in the short run and in the long run

i. An epidemic that leads to considerable losses in the labor force.

ii. Annexation of a newly deserted city (that can be interpreted as a rise in capital stock)

iii. Improvements in anti-malware software that decreases the depreciation rate for computers

In: Economics

Dual mandates may be unable to avoid the time inconsistency problem. True False

Dual mandates may be unable to avoid the time inconsistency problem. True False

In: Economics

Consider an economy that is subject to unexpected IS and LM shocks. Suppose Central Bank has...

Consider an economy that is subject to unexpected IS and LM shocks. Suppose Central Bank has two policy options: it will either keep the interest rate or the nominal money supply constant. For each type of shock, deduce which policy is more successful in reducing the variation in output.

In: Economics

A computerized machining center has been proposed for a tool-manufacturing company. The new system costs $250,000...

A computerized machining center has been proposed for a tool-manufacturing company. The new system costs $250,000 and the company expects to borrow $100,000 at interest rate of 10% and paying for the remaining from its own funds. The loan of $100,000 is to be repaid in equal annual installments at 10% interest rate over eight years. Once the new system is installed, it will generate annual revenues of $125,000 and will require $23,500 in annual labor, $8,500 in annual material expenses, $2500 annual maintenance and another $9,000 in annual overhead (power and utility) expenses. The depreciation is based on straight line depreciation for 8 years. The company expects to phase out the facility at the end of 8 years, at which time it will be sold for $75,000. If the company’s MARR is 15% find the following: (1) The year-by-year after-tax net cash flow for the project at a 32% marginal tax rate; (2) The after-tax Net Present worth (NPW) of the project and (3) The internal rate of return

In: Economics

In order to understand how competitive an industry is, economist use the either the (1) ____-firm...

In order to understand how competitive an industry is, economist use the either the (1) ____-firm concentration ratio, which looks at the output of the ____ largest firms/total output for the industry as a whole (industries in which these firms account for ____ percent or more are considered to be oligopolies) or (2) the _________ Index which is the squared percentage market shares of all firms in the industry. In a purely competitive market, the index would approach _______ while in a monopoly, the index would reach its maximum of _________. In the long run, a monopolistically competitive market will have a _______ profit.

Monopolistic competition is inefficient because:

1. P is (greater than, less than, or equal to) min ATC meaning that it is NOT ___________ efficient (i.e. the firm is producing where ATC is not at its minimum). 2. P is (greater than, less than, or equal to) MC meaning that is it NOT __________ efficient (i.e. the firm is underallocating resources).

In: Economics

In the managerial solution safety game, could cheap talk lead both firms to invest in safety?...

In the managerial solution safety game, could cheap talk lead both firms to invest in safety? Why or why not? What is the minimum fine that the government could levy on firms that do not invest in safety that would lead to a Nash equilibrium in which both firms invest?

In: Economics

1-what is public administration using your own words? 2- why is it important to study it?

1-what is public administration using your own words?

2- why is it important to study it?

In: Economics

Economic Impact- Global and Local It is believed that life after corona won’t be the same...

Economic Impact- Global and Local It is believed that life after corona won’t be the same as before corona, economically, socially, and personally. From an economic perspective, it was unprecedented to observe the “global paralysis” that threatens to destabilize the economic balance. Locally, the level of unemployment filing hit a record high. Small business, which represent close to 30 Million in number and account for more than 50% of the workforce were hit the hardest. Even with the injected financial stimuli, experts believe that if they do not get the much-needed help in a timely manner, then small business will not be able to survive, leading to a devastating damage to the economy.

What will the economic impact on small businesses be post COVID-19? How long will it take to recover? What are the overall lessons learned from this pandemic as related to small businesses?

In: Economics

specific field is : strategic decision-making. Question: Why did the Soviet Union decide to place offensive...

specific field is : strategic decision-making.
Question: Why did the Soviet Union decide to place offensive missiles in Cuba ?
(word limit 400 words )
you may find it "The Cuban Missile Crisis"

In: Economics

"The problem with our democratic institutions is that they don't correctly reflect the will of the...

"The problem with our democratic institutions is that they don't correctly reflect the will of the people! If the people-rather than self-interest politicians or lobbyists-had control, we would not have to worry about government taking actions that don't maximize allocation and product efficiency." Critique that statement. Do you agree or not and why.

In: Economics

For a demand function u (x, y) = xy, show the demand functions for good x...

For a demand function u (x, y) = xy, show the demand functions for good x and good y. (Remember that MRS = (du/dx) / (du/dy) = px / py in the point of interest, the tangency point of budget line and indifference curve. The budget condition is given by pxx + pyy = m)

for u (x, y) = x1/3 y2/3

In: Economics

China is a major producer of grains, such as wheat, corn, and rice. In 2008 the...

China is a major producer of grains, such as wheat, corn, and rice. In 2008 the Chinese government, concerned that grain exports were driving up food prices for domestic consumers, imposed a tax on grain exports. a- Draw the graph that describes the market for grain in China. Use this graph as the starting point to answer the following questions. b- How does an export tax affect domestic grain prices in China? c- How does it affect the welfare of Chinese’ consumers, the welfare of Chinese’ producers, and government revenue? d- What happens to total welfare in China, as measured by the sum of consumer surplus, producer surplus, and tax revenue?

In: Economics

When China’s clothing industry expands, the increase in world supply lowers the world price of clothing....

When China’s clothing industry expands, the increase in world supply lowers the world price of clothing. a- Draw an appropriate diagram to analyze how this change in price affects consumer surplus, producer surplus, and total surplus in a nation that mostly imports clothing, such as the United States. b- Now draw an appropriate diagram to show how this change in price affects consumer surplus, producer surplus, and total surplus in a nation that exports clothing, such as the Dominican Republic. c- Compare your answers to parts (a) and (b). What are the similarities and what are the differences? Which country should be concerned about the expansion of the Chinese textile industry? Which country should be applauding it? Explain.

In: Economics

According to the absorption approach, under what condition, the depreciation of a nation’s currency leads to...

According to the absorption approach, under what condition, the depreciation of a nation’s currency leads to an improvement of trade balances of the nation?

In: Economics

Describe the pricing strategy of a recently launched product of your choice. What is the pricing...

Describe the pricing strategy of a recently launched product of your choice. What is the pricing structure and the logic behind it? What did the organization do to implement its pricing successfully in the marketplace? What was the analysis / decision making process that the company went through in arriving at the launch price? What role did competitive pricing behavior play in influencing the success/failure of the product? What improvements could you suggest on how the company approached pricing and the actual pricing strategy? 


In: Economics