Regional and Urban Economics and Economic Development discussion
Business Finance
1. According to the traditional neoclassical model, what is the impact on production of:
a. 100 new machine presses
b. 200 workers entering the labor force
c. An increase in demand of $1.5 million new lawnmowers
d. Incorporating nanotechnology into production
e. An increase in taxes to benefit less fortunate regions
2. According to the neoclassical model, a new lawnmower manufacturing firm locates in Tall Grass Prairie, despite that area’s low unemployment rate. To be able to fulfill the $1.5 million contract for new lawnmowers, the firm is forced to increase wages by 30%. According to the neoclassical model, how does this increase in wages affect:
a. The other employers in Tall Grass Prairie
b. Employers in neighboring communities
c. Employees in both Tall Grass Prairie and neighboring communities
