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How often does the price you pay for a clean your shoes? What does your answer imply about the usefulness of market-clearing models for analyzing the market for shoes shine?
What do you think are the defining characteristics of a science? Does the study of the economy have these characteristics? Do you think macroeconomics should be called a science? Why or why not?
What do you think are the defining characteristics of a science? Does the study of the economy have these characteristics? Do you think macroeconomics should be called a science? Why or why not?
Using a production possibilities frontier (PPF) diagram, determine how does the PPF change in response to the following events: Make sure to explicitly indicate what sectors you are representing, and what sort of assumptions each event implies (i.e., a neutral effect vs a sector-biased effect). The latter follows from your assumptions on the factor intensity of the sector you are representing. a) Increasing skilled migration into the country b) Imposing taxes on manufacturing (hint: define a two-sector producing economy, manufacturing and services). c) Decreasing the expenditure on research and development d) Implementation of easier rules for foreign investment e) The effects of a pandemic
Identify what sort of effects the following listed events have. You are required to define the market under study (for example: the labour market, oil market, etc). Explain whether the event acts on the demand or supply side, and whether the event leads to a quantity or price change, or leads to a shift in demand and/or supply. Make sure to explain what sort of assumptions you are making on the elasticities of demand and supply. a) An increase in oil prices as a consequence of a price dispute in the world oil markets b) The implementation of a minimum wage c) The implementation of subsidies to milk producers in Australia d) The implementation of a Carbon tax in the economy. A Carbon tax is charged according to the level of emissions of greenhouse gases in an economy. e) The implementation of an increase in tuition in University studies
Suppose a firm has its TR and TC functions given as follows:
TR =300 Q -3Q2 and TC =500 +50 Q +2Q2
A. State the profit function of the firm
B. State the marginal profit function.
B .Find the level of Q that maximizes total profit.
D .State the marginal revenue function
E .State the marginal cost function.
Use a graph to explain the impact of a tax increase on output and interest rate in the IS-LM model.
9. Use 2 graphs to explain, in the Mundell-Flemming model, under flexible and then fixed exchange rate arrangement, the impact of money supply decrease on output and exchange rate.
Use a graph to demonstrate, in the Solow Model, how the saving rate affects the steady- state income level. In the model, does the saving rate affects the steady- state growth rate of income or growth rate of income per worker? Why or why not?
Without assuming exogenous technological progress, how does the endogenous growth model, e.g., the Y= AK model, explain income growth? Use algebra to demonstrate it. What is the difference between this explanation and that of the Solow model? Be aware how Solow model explains income growth.
