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Macroeconomics
Countries from the North are mainly responsible for damaging the ozone layer through mass production and consumption. Briefly explain the failures of the international measures in addressing environmental problems
Macroeconomics
Discuss the fact that savers prefer channeling their funds through financial intermediaries than lending them directly to borrowers. [12]
Macroeconomics
Using a well labeled diagram, Discuss the concept of financial intermediation.
Macroeconomics
Distinguish between income elasticity of demand and cross elasticity of demand
Macroeconomics
Using graphs, explain how interst rate works in the classical system to stabilise aggregate demand in the face of autonomous changes in components of aggregate demand such as investment or government spending.
Macroeconomics
a) The degree of convexity of an isoquant determines the degree of substitutability of factors of production. Do you agree? Explain.
Macroeconomics
Suppose 100 cars will be offered on the used-car market. Let 50 of them be good cars, each worth $10,000 to a buyer, and let 50 be lemons, each worth only $2,000.
A. Compute a buyer’s maximum willingness to pay for a car if he or she cannot observe the car’s quality.
b. Suppose that there are enough buyers relative to sellers that competition among them leads cars to be sold at their maximum willingness to pay. What would the market equilibrium be if sellers value good cars at $8,000? At $6,000?
A. Compute a buyer’s maximum willingness to pay for a car if he or she cannot observe the car’s quality.
b. Suppose that there are enough buyers relative to sellers that competition among them leads cars to be sold at their maximum willingness to pay. What would the market equilibrium be if sellers value good cars at $8,000? At $6,000?
Macroeconomics
Difference between rigid accelerator theory and flexible accelerator theory
Macroeconomics
Discuss five factors that influence investment
Macroeconomics
What are the determinants of consumption
