Questions from Managerial Economics

Q: For each of the following cases, determine which would be the

For each of the following cases, determine which would be the preferred macroeconomic model to analyze business fluctuations. a) Most wages are the result of collective bargaining and are therefore qu...

Q: Speeches made by Federal Reserve officials are an integral part of the

Speeches made by Federal Reserve officials are an integral part of the Fed’s management of expectations strategy. In a speech made in November 2002, then-Fed Governor Ben Bernanke, when trying to reas...

Q: Suppose the U.S. Congress is forced to increase taxes

Suppose the U.S. Congress is forced to increase taxes to pay for the cost of health care reform in the United States. Describe the effects of such a policy, according to the three business cycle model...

Q: Transparency and communication with the public by the Federal Reserve have increased

Transparency and communication with the public by the Federal Reserve have increased significantly over the last decade. What does this say about the Federal Reserve’s view of the relevance of the thr...

Q: Compare the following factors of production in terms of their rivalry and

Compare the following factors of production in terms of their rivalry and excludability: a) A robot that welds car frames and the idea of building a car in an assembly line b) A recipe to make pancake...

Q: The tsunami that hit Japan in April of 2011 was the costliest

The tsunami that hit Japan in April of 2011 was the costliest national disaster in history. The following graph describes Japan’s economy before the tsunami. Assume Japan was at its...

Q: Consider the effects of an increase in the saving rate on the

Consider the effects of an increase in the saving rate on the United States capital-labor ratio, according to the Solow model. a) What would be the immediate effect of a saving rate increase on the ca...

Q: Assume that low standards of living (i.e., low

Assume that low standards of living (i.e., low capital-labor ratios, in the Solow model’s terms) are the reason that some countries exhibit high fertility rates. Comment on the effect of population co...

Q: A measure of real interest rates can be approximated by the Treasury

A measure of real interest rates can be approximated by the Treasury Inflation Indexed Security, or TIIS. Go to the St. Louis Federal Reserve FRED database, and find data on the five year TIIS (FII5)...

Q: One of the most well-known population control policies is the

One of the most well-known population control policies is the one-child policy implemented by China since the late 1970s. Comment on the side effects of such a policy. This policy has been dubbed a su...