Question

Economist Steven Landsburg argues that if one believes in the death penalty for murderers because of its deterrent effect, using cost/benefit analysis we should execute computer hackers—the creators of worms and viruses—because the deterrent effect in cost saving would be

Question

State whether the following is an example of deductive, inductive, or abductive reasoning:
a. The number of rings inside a tree is the age of a tree. This tree has 10 rings. Conclusion: This tree is
10 years

Question

State whether the following statements belong in positive economics, normative economics, or the art of economics.
a. In a market, when quantity supplied exceeds quantity demanded, price tends to fall.
b. When determining tax rates, the government should

Question

State whether the following are primarily microeconomic or macroeconomic policy issues:
a. Should U.S. interest rates be lowered to decrease the amount of unemployment?
b. Will the fact that more and more doctors are selling their practices to

Question

Individuals have two kidneys, but most of us need only one. People who have lost both kidneys through accident or disease must be hooked up to a dialysis machine, which cleanses waste from their bodies. Say a person who has

Question

(UIP) You are in discussion with a forex trader.
a. She reveals that she made a 10% annual rate of return last year. Based on these data, can we say that the forex market in question violates the efficient

Question

What is a peso problem? In the case of fixed exchange rates, explain how peso problems can account for persistent interest rate differentials. Study the U.S.–Britain short-term (end-of-month) nominal interest rate differentials shown below for the year 1896 (NBER series

Question

Richland and Poorland each have two industries, traded TVs and nontraded house maintenance. The world price of TVs is RL$100 (R$ = Richland dollar). Assume for now that the is R$1 = 1 PP (PP = Poorland

Question

Suppose that a country’s money supply is $1,200 million and its domestic credit is equal to $800 million in the year 2005. The country maintains a fixed the central bank monetizes any government budget deficit, and prices

Question

Consider the central bank for the country of Riqueza. Riqueza currently has $1,800 million escudos in its money supply, $1,100 million of which is backed by domestic government bonds; the rest is backed by foreign exchange reserves.