You have that kind of obstacle on the Muslim side, and on the political reformist side, in the NGO [nongovernmental organization] community, and in much of the media, you have the concern that to ban an organization like JI is to raise the specter of restrictions on freedom of association and...

7. Why would it be valuable for a business to know the cross elasticity of demand for the two products it produces: peanuts and popcorn? 8. What is the practical significance of income elasticity coefficients? Explain the significance using as examples an income elasticity of 3.5 for computers...

Manufacturers Aircraft Association Radio (1920s) Complements Allows combination at relatively low cost (MPEG, etc) substitutes Are there antitrust reasons to prohibit certain activities? In the case of conflicting IP rights, could the firms bargain to attain efficient outcomes? Is there room...

8. Evaluation (c) Philosophical issue 1: Calibration & simulation vs. econometrics & prediction A model that is statistically rejected can still be useful: "It takes a model to beat a model." Calibration and simulation are here to stay. But DGE models are not...

Clearly, workers of the world ought to postpone uniting until other scores are settled. The war against terror is, above all, a war of ideas. But if the terrorists" ideas, be they in the form of the 1979 hostage crisis, the fatwa against Salman Rushdie, the nuclear issue or the fury...

E. Home and Foreign are now open to trade. Choose a possible relative world equilibrium price of cars after trade (PC/PS). F. At this world relative price, show possible trade equilibrium in Home and Foreign on your graph. G. What can you say about production of cars and sugar in Home? What...

10. Selling stocks. Suppose you have two stocks A and B. One falls in price and the other increases. If you only care about rates of return, which one should you sell?

Closed economy -> I = S + (T-TR-G) SOLOW MODEL there are DIMINISHING RETURNS to physical capital Technological Change What is it? Where does it come from? Can we speed it up How? Technological Change is exogenous as labor productivity increases, the k per worker increases exponentially...

6. When pricing automobiles, American car companies typically charge a much higher percentage markup over cost for luxury option items (such as leather trim, etc.) Than for the car itself or for more basic options such as power steering and automatic transmission. Explain why.

A. What are the profit-maximizing prices and quantities for the New York and Los Angeles markets?