1.
(a) Identify two market structures in which product development and product differentiation is an important type of competition for firms operating in those market conditions.
(b) Provide examples of three types of product differentiation that could help make a firm in a particular industry more competitive.
2.
(a) Would a minimum-wage law help entry-level workers in some market structure; while hurting them in another market structure? Explain.
(b) Would a labor union help workers in some market structure; while hurting them in another market structure? Explain.
3.
(a) Identify and describe four causes (i.e., types of unemployment).
(b) Are some workers more likely than others to be laid off and have a harder time finding another satisfactory job? Explain.
4.
(a) Identify three economic variables that create differences in market interest rates on assets and/or liabilities.
(b) For most companies, are business loan interest rates lower than the interest rates on personal loans for most U.S. households. Explain
(c) Is the interest rate paid by the U.S. government on its short-term Treasury bills (T-bills) usually less than a comparable commercial paper loan to most corporations in the U.S.? Explain.
5.
(a) Recommend some U.S. fiscal policy change in business taxes or government spending that would reduce the U.S. government's budget deficit and also help improve the U.S. economy? Explain.
(b) Would reducing the federal budget deficit also reduce the national debt? Explain. (c) What's wrong with raising taxes in a recession?