Questions from Macroeconomics

Q: Argue the case for and against a monetary rule.

Argue the case for and against a monetary rule.

Q: Government can remove individuals from a prisoner’s dilemma setting by changing the

Government can remove individuals from a prisoner’s dilemma setting by changing the payoffs from various actions. Explain.

Q: Does government always make individuals better off if it removes them from

Does government always make individuals better off if it removes them from a prisoner’s dilemma setting? Explain your answer.

Q: Government can remove two individuals from a prisoner’s dilemma setting and end

Government can remove two individuals from a prisoner’s dilemma setting and end up making one individual better off and the other individual worse off. Do you agree or disagree? Explain your answer....

Q: What is the relationship between MPC and MSC if a negative externality

What is the relationship between MPC and MSC if a negative externality exists? What is the relationship between MPB and MSB if a positive externality exists?

Q: Government can use taxes and subsidies to change an inefficient market outcome

Government can use taxes and subsidies to change an inefficient market outcome into an efficient outcome. Do you agree or disagree? Explain your answer.

Q: Even if government uses taxes to deal with a negative externality,

Even if government uses taxes to deal with a negative externality, an inefficient market outcome will not necessarily change into an efficient one. Do you agree or disagree? Explain your answer.

Q: What is the case for government intervention in the economy with respect

What is the case for government intervention in the economy with respect to non-excludable public goods?

Q: What is the purpose of financial markets?

What is the purpose of financial markets?

Q: “If you can predict interest rates, then you can earn

“If you can predict interest rates, then you can earn a fortune buying and selling bonds.” Do you agree or disagree? Explain your answer.