Practice Midterm 1 - The University of Chicago Booth School of
... Part I: Consumption Tax (15 points - 3 points each) As government budgets continue to be stressed, the talk of moving to a national sales tax arises from time to time. In this problem, let’s discuss how an increase in consumption taxes will affect some of the curves/markets that we have discussed s ...
... Part I: Consumption Tax (15 points - 3 points each) As government budgets continue to be stressed, the talk of moving to a national sales tax arises from time to time. In this problem, let’s discuss how an increase in consumption taxes will affect some of the curves/markets that we have discussed s ...
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... used tests such as the ADF Fisher Chi-square) estimates a separate ADF regression for each of the three cross sections to allow for individual unit root processes; i.e., ρi may vary across crosssections (referred to in the literature as pooling the residuals along the between-dimension). Table 1 be ...
... used tests such as the ADF Fisher Chi-square) estimates a separate ADF regression for each of the three cross sections to allow for individual unit root processes; i.e., ρi may vary across crosssections (referred to in the literature as pooling the residuals along the between-dimension). Table 1 be ...
The Economics of Trade in Variety by Zhihao Yu
... production and the variety of domestic goods declines. The former is the terms-of-trade effect and the latter is the variety effect. When the terms-of-trade effect is dominant, a country can gain by having more export varieties. This result might suggest a rationale for those export-promotion progra ...
... production and the variety of domestic goods declines. The former is the terms-of-trade effect and the latter is the variety effect. When the terms-of-trade effect is dominant, a country can gain by having more export varieties. This result might suggest a rationale for those export-promotion progra ...
Foreign Direct Investment: Do the benefits “trickle down?”
... >>>>Therefore it is acceptable to question what reasonable role we expect FDI to play in struggling economies…. Source: Gallagher, K.P. & Porzecanski, R. (2007). Economic reform and foreign direct investment in Latin America: a critical assessment. Progress in ...
... >>>>Therefore it is acceptable to question what reasonable role we expect FDI to play in struggling economies…. Source: Gallagher, K.P. & Porzecanski, R. (2007). Economic reform and foreign direct investment in Latin America: a critical assessment. Progress in ...
Problems set
... d) The efficient scale for a firm is the quantity of output that minimizes marginal cost. e) All costs are variable in the long-run. f) Because firms can enter and exit more easily in the long run than in the short run, the long run supply curve is typically more elastic (more “horizontal”) than the ...
... d) The efficient scale for a firm is the quantity of output that minimizes marginal cost. e) All costs are variable in the long-run. f) Because firms can enter and exit more easily in the long run than in the short run, the long run supply curve is typically more elastic (more “horizontal”) than the ...
Consumers and Demand 1 Ben Fine
... The presumption is, for example, that consumption of mixtures of goods is superior to concentrated consumption of a few goods. This might be justified on the grounds that variety is the spice of life but, when it comes to working with spices, this nostrum surely fails as does a non-satiation conditi ...
... The presumption is, for example, that consumption of mixtures of goods is superior to concentrated consumption of a few goods. This might be justified on the grounds that variety is the spice of life but, when it comes to working with spices, this nostrum surely fails as does a non-satiation conditi ...
Hierarchical integration
... forty kilometers away from the city of Udaipur in Rajasthan. A meal for four in a better place in New Delhi will cost about the same as it would in New York or Amsterdam; expenditures of $70-80 per head are hardly unusual these days. In Shishvi, you would be hard put to spend sums of 70 rupees per h ...
... forty kilometers away from the city of Udaipur in Rajasthan. A meal for four in a better place in New Delhi will cost about the same as it would in New York or Amsterdam; expenditures of $70-80 per head are hardly unusual these days. In Shishvi, you would be hard put to spend sums of 70 rupees per h ...
Consumers and Demand (Provisional Title)
... between microeconomics and macroeconomics first emerged in the 1930s, with the presumption that (Keynesian) macroeconomics would address the major problems of the day for which marginalist principles were at most of marginal use. In addition, other inductive traditions were strong in economics at th ...
... between microeconomics and macroeconomics first emerged in the 1930s, with the presumption that (Keynesian) macroeconomics would address the major problems of the day for which marginalist principles were at most of marginal use. In addition, other inductive traditions were strong in economics at th ...
Document
... – If price level rises, but contractual rigidities keep some input prices constant and firms do not immediately alter their expectations about other prices, firms will perceive relative prices of their outputs as having risen and will increase output. • This causes the economy to move up along a giv ...
... – If price level rises, but contractual rigidities keep some input prices constant and firms do not immediately alter their expectations about other prices, firms will perceive relative prices of their outputs as having risen and will increase output. • This causes the economy to move up along a giv ...
What does it imply for commodity markets?
... line with global consumption over the past two decades, leaving their share of world consumption virtually unchanged at about 23 percent and 10 percent, respectively (Figures F8). This partly reflects a greater sensitivity of agricultural commodity demand to population growth compared to industrial ...
... line with global consumption over the past two decades, leaving their share of world consumption virtually unchanged at about 23 percent and 10 percent, respectively (Figures F8). This partly reflects a greater sensitivity of agricultural commodity demand to population growth compared to industrial ...
19503_unit-ii - WordPress.com
... hurdle to the measurement of national income of underdeveloped countries. ...
... hurdle to the measurement of national income of underdeveloped countries. ...
2004-22
... A high demand for output in a state or territory market stimulates foreign firms to increase their supply of output in the state’s manufacturing sector. The sign on the coefficient of SGDP in this analysis is therefore expected to be positive, meaning that a larger market size should encourage more ...
... A high demand for output in a state or territory market stimulates foreign firms to increase their supply of output in the state’s manufacturing sector. The sign on the coefficient of SGDP in this analysis is therefore expected to be positive, meaning that a larger market size should encourage more ...
The Macroeconomics of Job
... available but also on the level of social infrastructure investment and the wage rate. Greater levels of social infrastructure investment and higher wage rates increase both labour and capital productivity, although with diminishing marginal returns. Firms maximise profits by choosing the quantity o ...
... available but also on the level of social infrastructure investment and the wage rate. Greater levels of social infrastructure investment and higher wage rates increase both labour and capital productivity, although with diminishing marginal returns. Firms maximise profits by choosing the quantity o ...
Growth of Tourism
... the profits of the industry toother countries. The World bank estimates that 55% of the gross revenue from tourism in LEDCs leaks its way back to MEDCs. •All inclusive tourists contribute most to leakage (estimates suggest that 80% money spent goes to foreign companies). •It is also classed as an en ...
... the profits of the industry toother countries. The World bank estimates that 55% of the gross revenue from tourism in LEDCs leaks its way back to MEDCs. •All inclusive tourists contribute most to leakage (estimates suggest that 80% money spent goes to foreign companies). •It is also classed as an en ...
The Economics of Small Open Economies
... pays on its debt can be analyzed as the sum of a country-specific component and an international element. By definition, the former depends entirely on the country’s (economic, political, and geographical) features. For instance, by limiting people’s savings choices to domestic instruments, a govern ...
... pays on its debt can be analyzed as the sum of a country-specific component and an international element. By definition, the former depends entirely on the country’s (economic, political, and geographical) features. For instance, by limiting people’s savings choices to domestic instruments, a govern ...
Divergence, Big Time
... As an alternative way of considering subsistence GDP per capita, begin with the finding that estimated average intake per person per day consistent with working productively is between 2,000 to 2,400 calories.7 Now, consider two calculations. The first is that, based on a cross-sectional regression ...
... As an alternative way of considering subsistence GDP per capita, begin with the finding that estimated average intake per person per day consistent with working productively is between 2,000 to 2,400 calories.7 Now, consider two calculations. The first is that, based on a cross-sectional regression ...
I. GLOBAL AND REGIONAL ECONOMIC DEVELOPMENTS AND PROSPECTS: OVERVIEW
... I. Global and Regional Economic Developments and Prospects: Implications for the ESCAP Region absorb the higher energy prices. Moreover, a significant oil supply shock, such as from further difficulties in Iraq or in any other major oilproducing country, cannot be ruled out. The persistent current ...
... I. Global and Regional Economic Developments and Prospects: Implications for the ESCAP Region absorb the higher energy prices. Moreover, a significant oil supply shock, such as from further difficulties in Iraq or in any other major oilproducing country, cannot be ruled out. The persistent current ...
Ch22
... upward-sloping." Is this statement true, false, or uncertain? Explain your answer. 7. If huge budget deficits cause the public to think that there will be higher inflation m the future, what is likely to happen to the short-run aggregate supply curve when budget deficits rise? 8. If a pill were inve ...
... upward-sloping." Is this statement true, false, or uncertain? Explain your answer. 7. If huge budget deficits cause the public to think that there will be higher inflation m the future, what is likely to happen to the short-run aggregate supply curve when budget deficits rise? 8. If a pill were inve ...
Implications of the Financial Crisis for Potential Growth
... A natural presumption would be that the growth in the real output of the sector and the surge in earnings were linked; that the increase in profits largely reflected the increased contribution of the sector to overall GDP growth. However, the scale of the collapse in values in securities markets ov ...
... A natural presumption would be that the growth in the real output of the sector and the surge in earnings were linked; that the increase in profits largely reflected the increased contribution of the sector to overall GDP growth. However, the scale of the collapse in values in securities markets ov ...
Open Access - Scientific Research Publishing
... directly caused the economy downturn. In addition, if the international crude oil prices still hovers in the low level in the future and domestic price cannot match, the competitiveness of export enterprises will be affected and foreign trade volume will be further declined. ...
... directly caused the economy downturn. In addition, if the international crude oil prices still hovers in the low level in the future and domestic price cannot match, the competitiveness of export enterprises will be affected and foreign trade volume will be further declined. ...
Ragnar Nurkse's balanced growth theory
The balanced growth theory is an economic theory pioneered by the economist Ragnar Nurkse (1907–1959). The theory hypothesises that the government of any underdeveloped country needs to make large investments in a number of industries simultaneously. This will enlarge the market size, increase productivity, and provide an incentive for the private sector to invest.Nurkse was in favour of attaining balanced growth in both the industrial and agricultural sectors of the economy. He recognised that the expansion and inter-sectoral balance between agriculture and manufacturing is necessary so that each of these sectors provides a market for the products of the other and in turn, supplies the necessary raw materials for the development and growth of the other.Nurkse and Paul Rosenstein-Rodan were the pioneers of balanced growth theory and much of how it is understood today dates back to their work.Nurkse's theory discusses how the poor size of the market in underdeveloped countries perpetuates its underdeveloped state. Nurkse has also clarified the various determinants of the market size and puts primary focus on productivity. According to him, if the productivity levels rise in a less developed country, its market size will expand and thus it can eventually become a developed economy. Apart from this, Nurkse has been nicknamed an export pessimist, as he feels that the finances to make investments in underdeveloped countries must arise from their own domestic territory. No importance should be given to promoting exports.