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Milo buys an all-terrain-vehicle (ATV) from No-Limit Toys, Inc., on credit but makes no payments on the account. Odell, the owner of No-Limit Toys, calls Milo at home on a Monday morning at three a.m. Odell represents himself as PayNow Collection Agency and demands payment “or else.” The next day, Odell sends Milo notice that he has thirty days in which to request verification of the debt and that its payment will be suspended during that time, but that if he does not pay the full amount due within five business days, Odell will arrange for the “destruction of Milo’s good credit rating.” Which laws has Odell violated, if any, and in what ways?
Consider the classical model of National Income. What determines the total output of the economy? Why is GDP such an important metric/variable in macroeconomics? What determines the distribution of income in this model?
When a good is limited, some means must be found to ration the scarce commodity. Some examples of rationing devices are auctions, ration coupons, and first-come first- served systems. What are the strengths and weaknesses of each? Explain carefully i..
What is the SAP (structural adjustment program)? What are the IMF-imposed "conditionalities"? Win did the IMF and World Bank imposed them upon Third World countries during both their debt crises and financial crises?
Economists argue that some environments are more conducive to economic growth than others. One of the ways economists differentiate one environment from another is in terms of its institutions. An institution is the rules of the game in a society or,..
Suppose that each worker in the Foreign country can produce two cars or three TVs. Assume that Foreign also has four workers. Graph the production possibilities frontier for the Foreign country. What is the no-trade relative price of cars in Foreign?
We are evaluating a project that costs $837,000, has a thirteen-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 156,000 units per year. Price per unit is $35,..
A community ponders implementing a no-smoking ordinance that would eliminate smoking in all businesses, government offices, and public places. Smokers are upset and argue that their rights are being violated by this proposed ordinance. How does the r..
The benefits of an oil spill prevention program include avoided costs, fewer disruptions to normal shipping operations, etc. Cleanup time is consuming an expensive. A typical 1000 oil spill might cost $600000 to clean up or $300000 to prevent in the ..
In the past year, the price of dry-cleaning solvent doubled. More than 4000 dry cleaners across the country disappeared as budget-conscious consumers cut back. This year the price of hangers used by dry cleaners is expected to double. Explain the eff..
As the United States economy moves out of a recession, U.S. financial investors increase their purchases of stocks that are expected to earn a higher rate of return than they are currently earning on their savings account deposits. Explain how the ch..
The long-term trend of a time series in the decomposition model is estimated using
Oskar's preferences over gambles in which the probability of events 1 and 2 are both 1/2 can be represented by the von Neuman-Morgenstern utility function 0.5x5 + 0.5y5 where x is his consumption if event 1 happens and y is his consumption if event 2..
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