Economics

Explain the difference between inferior goods and normal goods. As a developing economy experiences increases in income (measured by GDP), what do you predict will happen to the demand for inferior goods?

Prisoner's dilemma and oligopolies

Imagine that you're on vacation in Russia, when suddenly you're arrested and accused of spying for the US. (You're innocent, of course). Your captors inform you that if you confess, you'll receive a prison sentence of two years, while your co-conspirator (whom you've never heard of) will receive a prison sentence of twenty years. If you both confess, you'll each receive a prison sentence of five years. You're also told that your co-conspirator is being offered the same option. If you both maintain your innocence, however, there's not enough evidence to convict either of you. Applying economic theories to the problem, what should you choose to do, and why?

How to work a competition/price gauging problem

Two companies with the same product compete a local market. The demand for product A is Q=50-10P. How much of product A is sold in the market and at what price in both companies?

Fiscal Policy

What is fiscal policy? What are the steps involved in implementing fiscal policy? What actions expanded the economy ? what actions contract the economy? What actions expand the economy? Note one business activity understanding this concept would be of value to.

What has caused the U.S. run a merchandise trade deficit year after year since the early 1980s? Is the current account a deficit problem? Explain. Is the trend of the international investment position of the U.S. problematic? Why or why not? How is the current account related to a country’s business cycle? What is the relationship between a country’s net financial inflow and its current account? How does the U.S make adjustments for the balance of payment issues?

Your hometown newspaper needs someone to write an informative article on large scale economic issues. The reporter who spoke with you before thinks of you, welcomes you home, and requests another article. Click here to view a summary of disaggregated data drawn from information provided on the 2000 U.S. balance of payments which is in the 2002 federal document, Economic Report of the President, available on the web. In addition to the balance of payments data presented above, the Bureau of Economic Analysis’ document entitled International Investment Position of the United States (http://www.bea.gov/bea/newsrel/intinvnewsrelease.htm) offers the following information. "At year-end 2002... click for more