[ Intermediate Macroeconomic Theory II Practice]

 

i.Short-answered questions
1.Define Cobb-Douglas production function and explain the meaning of each element.
2.Define the types of unemployment and explain government solutions to solve the problems causing by unemployment.

 

ii.Long-answered questions
1.It could be argued that economies of scale and network effects are themselves a form of comparative advantage. "Poorer, developing economies may struggle to ever develop certain industries because they lag too far behind the economies of scale...". Evaluate the statement by using new trade theory.
2.Using porter's diamond theory to evaluate the success of luxury car industry in Germany.