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An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined in the U.S. before the loan was fully repaid. At the end of 3 years, at the time of the third payment, the bank agreed to reduce the interest rate on the remaining debt from 8% to 7%. What was the amount of the equal annual end-of-year payments for each of the first 3 years? What was the amount of the equal annual end-of-year payments for each of the last 3 years?
Consider a person who can work up to 80 hours each week at a pre-tax wage of $20 per hour but faces a constant 25% payroll tax. Under these conditions, the worker maximizes her utility by choosing to work 40 hours each week. Show that the worker wil..
What is the difference between gross domestic product (GDP) and gross national product (GNP)? What is the difference in what GDP measures compared to GNP? Based on the table, what calculations must you make to determine GNP from GDP?
Explore one of the sophisticated pricing techniques covered in this topic and provide an example of how it is used. What are some constraints that may limit the ability of firms to use these techniques?
Consider that the demand function for spring water is as follows: Q = 450 - 100P + 0.0001Pop + 0.005Y + 0.003A where: Q = quantity in thousands of containers, P = Price ($) = $4; Pop = Population (# of people) = 4,000,000 Y = Disposable Income per ca..
Why are usage-based insurance rates lower than at-rate insurance fees? Give two separate reasons and explain.
Chimnesia has two equally sized groups of people: smokers and nonsmokers. Both types of people have utility U = ln(C), where C is the amount of consumption that people have in any period. So long as they are healthy, individuals will consume their en..
According to the theory of comparative advantage, nations gain from trade because
Neglect other concerns, like closing costs, capital gains, and tax consequences of owning, and determine whether it is better to rent or own.
When the investment rate in a country decreases permanently (as a result of discouraging fiscal policy such as an increase in investment taxes, for example), does it impact the level or the growth rate of output per worker? Explain briefly what happe..
Crew Brew of Wisconsin plans to build a microbrewery on a small stream in that state. After sampling water from the stream, Chris Pierson has found that it is contaminated with pulp and paper waste from a local paper mill.
ALL colleges of business today also was 1st proposed as a factor of production by a classical economist less than 40 years after Adam Smith.
Find the total quantity produced also every firm's profit in equilibrium. Express Illustrate what happens to these when Firm 1 changes its technology as above.
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