Name: ___________________ Class: _________________ Date: __________ Problem Set 3 1. How does the interest rate effect explain the slope of the aggregate demand (AD) curve? 2. How does the wealth effect explain the slope of the aggregate demand (AD) curve? 3. What is the difference between a movement along the aggregate demand (AD) curve and … Read more
Explain the following. Commercial consideration vs scientific judgement in approving drugs by FDA Public-interest Theory vs Private-interest Theory of regulation Regular monopoly vs. natural monopoly Economic Regulation vs Social Regulation What are the features Glass-Steagall Banking Act. Which parts were repealed subsequently? How did that lead to 2008 Financial Crisis? What are … Read more
Explain the differences between the following. Government regulation vs. Corporate Governance Stockholders vs. Stakeholders Explain the following terms, and provide one example each. Asymmetric Information Moral Hazard Principal-Agent Problem Identify failures in corporate governance and government regulation in the cases of Enron and Sub-Prime Mortgage Crisis
PART ONE How would a low-cost price leader enforce its leadership through implied threats to a rival? How does a firm become a “low cost” price leader? Discuss the specific type of market structure that implied threat strategy can be adapted. – 200 words PART TWO: you are required to pick a current economic topic that … Read more
Margaret Thatcher was the Prime Minister of UK from 1979 to 1990. What is the difference between supply side policies and demand management policies? List four supply side policies. Thatcher also used contractionary monetary policy. Using AD-AS diagram show the short-run economic equilibrium with high inflation and high unemployment. Show the impact … Read more
ECON 3380 : Business and Government Homework 9 This question is based on Lectures 7 and 8. After the early successes of industrial revolution, each of the following countries faced stagnations, recessions or depressions. Explain features of those stagnations, recessions, or depressions. USA UK Japan Germany Explain Short-Run Phillips’ Curve Explain Long-Run Phillips’ … Read more
The file “wage” presents 526 observations from the Current Population Survey for the year 1986. The variables are in the following order: wage = average hourly earnings educ = years of education exper = years of experience nonwhite = Y if nonwhite female = Y if female married = Y if married tenure = years … Read more
When was the Social Security Program established in the USA? What are the economic circumstances and reasons for establishing Social Security? Explain the following in the context of social security. Defined Contribution Plan Defined Benefits Plan Pay-As-You-Go Plan A private firm plans to establish an insurance scheme to safeguard individuals from losing … Read more