BUS702 Semester 2, Final Exam 2019
Defense BOTH doubts.
Each doubt carries resembling weighting.
Notes
(1) This is referable a oral exam referablewithstanding is a “take settlement exam” or provision. Fascinate decipher all
instructions cautiously.
(2) You should decipher the doubts and the creed antecedently enhancement away opportunity (probably on a different
day) to transcribe your defenses.
(3) This exam is “open book” referablewithstanding “researched” defenses are referable required and, in occurrence, no research
should be undertaken; that is, you should transcribe from your possess mind externally references.
SafeAssign checks submitted finishs control plagiarism so be cautious to transcribe in your possess language.
(4) Inhale mismismisapply links to the economic system you own erudite in the round and do referable offer
unsubstantiated impression.
(5) Use diagrams where misappropriate. Hand-drawn ones are merry, life faster to inhale, and
may be scanned in (as pdfs, fascinate – no other finish controlmats!). Blackboard can solely decipher Word and
PDF finishs. So, fascinate do referable upload finishs in any other controlmat.
(6) The deadline control uploading your defenses is: November 1, 2019 by 11:59 PM!
2
1. The august productivity slowdpossess puzzle
https://review.chicagobooth.edu/economics/2018/article/why-hasn-ttechnology-sped-productivity
https://review.chicagobooth.edu/economics/2019/article/how-low-interest-ratescan-hurt-competition-and-economy
Access the controlthcoming creed (frequented links are supposing over):
1) “Why hasn’t technology sped up productivity?” by Chad Syverson. This boundary was
published in Chicago Booth Review on Feb, 5, 2018.
2) “How abject curiosity-behalf rates can annoy rivalry, and the economy” by Dee Gill. This boundary
was published in Chicago Booth Review on April 23, 2019
Defense the controlthcoming doubts:
a) Chad Syverson transcribes, “Since economic augmentation requires productivity augmentation, if we don’t
figure quenched why this (slowdpossess in productivity augmentation) is happening and how to tie it, we
won’t earn sustained increases in GDP per capita”.
By using the AD-AS (gist insist-gist minister) framework, expound Chad
Syverson’s announcement in-reference-to the consequence of productivity augmentation.
(10 points)
b) Chad Syverson transcribes, “Suppose the slowdpossess following 2004 hadn’t happened, and we kept
going with the similar mediocre productivity augmentation that we proverb from 1995 to 2004. That would
mean GDP in 2017 would own been, undestroyedly suggestive, $3 trillion preferable than it
was”.
Expound how Chad Syverson reachd at the undestroyed regard of $3 trillion. That is,
expound the consideration he had effected to reach at this estimate. US authentic GDP basis can be found
at this link: https://www.multpl.com/us-gdp-inflation-adjusted/table/by-year
(10 points)
c) Expound at smallest three disputes Chad Syverson gave opposing the mismeasurement
hypothesis. (10 points)
d) Dee Gill transcribes “The manifestation is that suitableness (low) curiosity-behalf rates initially scintilla association
spending, they then imperil a productivity flexuosity among dominant and smaller companies that
ultimately discourages twain groups from spending (on reversal)”.
The over announcement summarizes the explanation dispute in the boundary by Dee Gill. Expound the
dispute in the boundary by using the AD-AS framework. (10 points)
e) If you are real that the dispute in Dee Gill’s boundary is punish, as an economic
advisor to the empire, would you approve a auguster role control fiscal management in
combating economic slowdown? Very little expound. (10 points)
3
2) Smoking rates in US own overpowered to all-opportunity abject, referablewithstanding how did they eternally earn
so haughty? By Richard Gunderman
https://theconversation.com/smoking-rates-in-us-have-fallen-to-all-time-low-but-how-didthey-ever-get-so-high-107185
Access the boundary at the URL consecrated over and defense the doubts adown.
(a) The originator transcribes, “Notwithstanding in 1875, a Richmond, Virginia, association offered a US$75,000
booty control the fabrication of an unimpassioned rolling utensil. The booty was claimed by James
Bonsack, whose utensil could roll 200 cigarettes per detailed, dramatically increasing
capacity and abjectering evolution costs.”
By inhaleing a insist-minister diagram, expound the collision of the fabrication of unimpassioned
rolling utensil in the dispense control cigarettes. (10 points)
(b) According to the originator, during World War 1, cigarettes were used as vogue. Did
cigarettes verify the three functions of currency? Little expound. (10 points)
(c) Cigarette companies ran antagonisms in which they dressed to indoctrinate vilealty that cigarettes
are “Your throat security opposing cough”. In a insist-minister texture, what was the effect
of this antagonism in the dispense control cigarettes? (10 points)
(d) The boundary points quenched that once someone has instituted smoking, attempts to seal administer to
withdrawal symptoms such as headaches and disgust. How does this occurrence substance control price
elasticity of insist in the dispense control cigarettes? (10 points)
(e) The boundary makes a similarity among “social media” and “cigarettes”. Point quenched at
smallest three features that are vile to twain dispenses. Very little expound. (10 points)
—–END OF EXAMINATION—

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