Category: Economics

Question 12 pts.
Laissez faire, as popularized by Scottish economist Adam Smith and British philosopher Herbert Spencer, describes an economic philosophy that markets function bestwhen left to their own devices, i.e., without, or with minimal, government involvement orregulations.TrueFalse

Which country experlences the greater inorease in production?A. The teo countries experience similar increases in production.B. Cumar has the greater increase in production.C. Rohan has the gitater increase in production.D. There is not enough information gives to answer this question.

Just-in-time (JIT) manufacturing is a production technique brought to the United States for use in the industry.
Question 2 options:
Chinese – automotive
Japanese – automotive
South Korean – telecommunications
Taiwanese – semi-conductor
Vietnamese – textiles

➤ When would the discount rate be used instead of IORB?
The discount rate applies when a bank borrows directly from a Federal Reserve discount window, usually for short-term liquidity needs or emergency funding. It is typically higher than IORB and serves as a backstop lender-of-last-resort rate. Banks turn to the discount window when they cannot obtain funds at or above the market or IORB level.

➤ How would you make fiscal policy endogenous to maximize household welfare?
Introduce a social planner or Ramsey problem that chooses taxes and public consumption to maximize representative household utility subject to the resource and implementability constraints. This requires specifying preferences, production technology, and feasible tax instruments, which yields first‑order conditions and optimal tax‑consumption paths instead of fixed fiscal rules.