Macroeconomics Answers

What do you think will be the long-range impact of computers and other information-processing technology on police work and police administration? What has been the impact so far?

What do you think are the primary methods by which police organizations actually control their employees’ decision making?

11 1. Recall the lemons problem at the start of the chapter. Some used cars are peaches, worth $3,000 to buyers and $2,500 to sellers, and some are lemons,. worth $2,000 to buyers and $1,000 to sellers. There is a fixed supply of cars and unlimited demand. Suppose there are twice as many peaches as lemons. Assume buyers can't tell the quality of a given car, while sellers can. What do the supply and demand curves look like? In the text, we asserted that markets clear at $2,666.67. Are there other market clearing prices?

According to By the Numbers, what percent of total national debt and foreign held debt is held by China? How about OPEC nations? What does this suggest about the relative importance of U.S. relations with China and OPEC nations?

Explain the effects of tariff on the current account of an importing country.

“A country with current account deficit is indicate a sign of weakness while a country with

current account surplus is indicate a sign of strength in terms of economic growth”

Do you agree with the above statement? Justify your answer.

Country A and country B both have the production function Y = F(K, L) = K^1/2L^1/2.

a)     Does this production function have constant returns to scale? Explain.         

What is the per-worker production function, y = f(k)? [Hint: use the solow model] 

suppose that the net investment flow is described by the equestion I(t)=6t1/2 and that the initial capital stock at time t=0 is k(0) what is the time path of capital.what will be the capital formation during the time interval (3,5).

1.       How would each of the policies listed in parts (a) through (b) change the Tanzi–Olivera effect?

a.        Requiring monthly instead of yearly income tax payments by households.

b.       Assessing greater penalties for under-withholding of taxes from monthly paychecks.

c.        Decreasing the income tax and increasing the sales tax.

1.       What is the rate of money growth that maximizes seignorage in the economy described in problem 6(b)? (Hint: you learned in problem 6(b) that seignorage, in the medium run, is greater at money growth of 50% than at money growth of 25% or 75%. Start by calculating seignorage for money growth rates near 50%. Increase and then decrease money growth rates by one percentage point until you find the answer.)

if Sue sold 100 bears what would her total revenue be