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Tea farmers collect pick the leaves and arrange it in different boxes based on tea quality. They are paid by number of trees from where the leaves were plucked. Total payment is amount of money for plucking leaves multiplied by number of trees). Team normally decide an equal pay among themselves. How is the inefficiency of team members dealt with?
What are the key management assertions related to equity? What are the most important assertions related equity? How will auditors test these assertions?
XBC Inc. is planning to buy a new car. Model A costs $22,000 and is expected to have a life of 4 years. Model B costs $35,000 but it is expected to last 6 years. Model B provides a better warranty and it will save the company an average of $1,000 per..
Using the II-XX framework below, show using a figure that fiscal policies by themselves cannot bring the economy to both internal and external balances. Do start with an economy at Point 2 (you will have to address devaluation). A close to complete a..
How will planned investment spending change as the following events occur? The interest rate increases as a result of Federal Reserve policy.
Explain what is the maximum amount of new loans that this bank can make. Show in column 1 how the bank's balance sheet will appear after the bank has lent this additional amount.
The (steady state) equilibrium value of output per person in the Solow growth model (Chapter 5) is given by y∗ = A¯^3/2(s¯/d¯)^1/2 (1). Why do you think the technological parameter A¯ enters with a deferent exponent in the equations? Or equivalentl..
A 100 KM toll way costs $5M per km to build. The bonds are for 20 years and pay 10 percent per year [(A/P, 10%,20) = 0.1175]. If annual maintenance costs are $1000 per km, and 20000 vehicles use the toll away every day, what toll needs to be charged ..
An EOY Geometric gradient lasts for 10 years, whose initial value at EOY three is $5,500 and average rate f = 8% per year thereafter. The interest rate is 12%/year. What is P0 for the geometric gradient?
A firm will maximize its profits by hiring factors up to the point at which:
Draw the Edgeworth box diagram for all possible exchanges in this situation. What is the contract curve for this exchange?
Explain the differences in the classical and the keynesian theories of macroeconomic policy with respect to a recession. Explain fully and use a graph in your analysis.
Taxes and negative externalities? Taxes on negative externalities are intended to make consumers / producers pay the full social cost of the good. This reduces consumption and creates a more socially efficient outcome. Agree?
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