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Study the depreciation rules as published by the IRS or the appropriate agency of another government. Describe some aspect not covered in this chapter. Provide an example.
Bob's lawn-mowing sevice is a profit-maximizing competitive firm. Bob mows lawns for $27 each. His total cost each day is $280, of which $30 is a fixed cost. He mows 10 lawns a day. What can you say about Bob's short-run decision regarding shutdown a..
Consider the following recurrence for a function T that takes on nonnegative values and is defined on integers ≥ 1:T(n) ≤ 5 if 1 ≤ n ≤ 4 or ≤T(7n/10) + T(n/5) + 3n if n > 4. Prove that T(n) is O(n). You should present a particular constant c and ..
A consumer must divide $600 between the consumption of product X and product Y. The relevant market prices are Px = $10 and Py = $40. a. Write the equation for the consumer's budget line. b. Illustrate the consumer's opportunity set in a carefully la..
The cyclical rate of unemployment can be negative, which implies that the business cycle sometimes produces too little unemployment. How can there be “too little” unemployment for the health of the economy? When the one million quit looking for jobs,..
The table below represents the production function for Hawg Wild, a small catering company specializing in barbecued pork. The numbers in the cells represent the number of customers that can be served with various combinations of labor and capital.
Using a three-circle Venn Diagram, check the following categorical arguments for validity. Some advertisers try to create a new ideal state for consumers. Some advertisers try to create dissatisfaction with the consumer’s current state. So, some who ..
Many automobile manufacturers routinely advertise the safety of their cars, yet airlines generally do not even mention safety in their advertising. Can you suggest an explanation for this difference?
The market for soda has supply and demand curves given by, What is the equilibrium price and quantity for sodas? Returning to question 1, suppose the government put a tax on soda of $0.50 per can to be paid by consumers. Graph the before and after ta..
Assume that GDP (Y) is 6,000. Consumption (C) is given by the equation C = 600 + 0.6(Y – T). Investment (I) is given by the equation I = 2,000 – 100r, where r is the real rate of interest in percent. Taxes (T) are 500 and government spending (G) is a..
Are cyclical fluctuations necessary for economic growth?
Explain what is allocative and technical inefficiency, why does it occur under monopoly, and why are they undesirable from society's standpoint.
Which of the following would be a way that the government could encourage entrepreneurship in an economy? Which of the following statements are true regarding employment statistics? Which of the following best describes an economy that is in recessio..
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