Macroeconomics Answers

Define expenditure control measures

Jason is travelling to Europe for vacation and is seated in a​ first-class airline seat holding his infant daughter in his arms. He values being in first-class instead of coach at ​$350.

​Samantha, a CEO of a major multinational​ corporation, is sitting in the adjacent seat and is considering offering to pay Jason to move to one of the empty seats in coach.

Samantha values quiet at ​$300.

N  Aaron and Samantha (answer A ou B) reach a mutually agreeable price for Aaron to move to coach.

Fuelwood and charcoal as sources of energy are problematic. Discuss. 

How to define economic welfare?

A farmer grows a bushel of wheat and sells it to a miller for $1.00. The miller turns the wheat into flour and then sells the flour to a baker for $3.00. The baker uses the flour to make bread and sells the bread to an engineer for $6.00. The engineer eats the bread. What is the value added by each person? What is GDP?

What is the “European Semester”? What is its purpose?

What is the “excessive deficit procedure”? When can it be triggered?

Why do EU rules limit admissible government deficits and debt levels?

What is the subsidiarity principle? Is it relevant for all EU legislation?

“Exit of the United Kingdom from the EU is not that bad after all, because it will draw

economic activity and working places from the UK into the EU.” Discuss.