If some investment project has multiple stages, one can often realize it is failing before the final stage. Yet, sometimes instead of abandoning further investment, people continue to invest because they don't want to feel as if they wasted money. This is called...
A bond that matures 3 years from now has a face value of 100 and matures 3 years from now. Estimate the interest rate if the current price of this bond is 91. r approx?
The demand for good X on a monopoly market is given by Q = 100 - P, the cost function is TC = Q2 + 5. How will the monopolist's output change if the government introduced the price ceiling at 50?
The plumber labor market of the town X is perfectly competitive, supply is a linear function that passes through the origin. The equilibrium wage is 10per hour. After the minimum wage of 12 per hour was introduced, the quantity supplied of labor increased by 10 workers, the quantity demanded fell by
Firm X uses capital and labor to produce its nal product. For every unit of a product, 1 unit of capital and 2 units of labor are needed. If labor and capital both cost $2 per unit, what is the marginal cost of producing the 18'th unit of a product?
Country A's production possibility frontier is given by the equation X2 + Y2 = 200. Country B's production possibility frontier is given by the equation X + Y = 100. Choose the correct statement.
Country A's statistical agency has revealed the following data about the country's economy in 2019: GDP = 11000 Private consumption (C) = 5000 Investment (I) = 3000 Import (Im) = 1000 Taxes collected = 500 What can we infer from this information about government spending (G)?
In this task, please answer the following questions related to the economic and econometric aspects of the COVID-19 pandemic. (a) (10 rp) When fighting an "ordinary" recession, it is sufficient for the government to pay out transfers to households only. However, in the current recession, transfers t
Imagine a small country IEOnia, in which the Central Bank has abandoned its old national currency with a substantial share of cash and introduced a new virtual sovereign currency based on blockchain. The new system is cashless, and all other (private) currencies are prohibited. Instead of holding ca
The richer the country, the higher the cost of living. Prices that you see in supermarkets and cafes of London generally are higher (in nominal terms) than those in Baku or Gaborone. (a) (10 rp) For different goods and services, this effect is different. Provide examples of goods or services which t
This task consists of two parts. They are indirectly related, and the answers to them are somewhat similar. If you answer part (a) correctly, it'll be easier for you to come up with a correct answer to (b), and vice versa. (a) (15 rp) It often happens that, under the threat of entry of a competitor,
As a pandemic caused by a new virus wreaks havoc in the world, no one is yet ill in town M (but some people may be unknowingly infected and may be able to spread the virus). The town administration considers introducing a lockdown to prevent the spread of the virus. How strong should the lockdown be
