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You sold a motorcycle and accepted a note with the following cash flow stream as your payment. It pays you nothing now, $726 next year, and $6,000 for the three years after that(years 2-4). What was the effective price you received for the motorcycle assuming an nominal interest rate of 8.5%?
If insurance companies are required to offer coverage to all interested people, it is said that premiums for each person will be increased. Assume that the insurance market is perfectly competitive. What is the major reason for raising the premium?
When comparing subsidy systems with cash transfers, it is crucial to consider whether it is the general welfare of the recipient or his consumption of the specified good which is of prime importance. Discuss.
Two years ago, the GDP deflator for Old York was 300, and today it is 330.75. Based on this information the annual average inflation rate during these two years was
A perfectly competitive firm is producing 75 units of output. the market price is $7 and the firm's marginal cost is $8. the firm should: In an asymmetric market for used card, which of the following could be used to avoid a thin market? In the marke..
1) Who was king in the year 1000? Give the name and nickname. 2) Find all the pairs of kings or queens (A,B) such that A was the great grandchild of B. 3) Find the name and nickname of all kings or queens that have a nickname that does not begin with..
Oligopolies are known as big businesses. Select an oligopoly and discuss how globalization may have affected its resource allocation.
When it started a century ago, marketing treated all customers the same. By the 1960s, marketers were able to break that anonymous mass into segments. Now customer databases allow them to treat customers as individuals. A system like the one above wo..
In economics, the concepts of economies of scale and economies of scope if often used in the context of production. How are these concepts similar and different? Please use your own examples to explain these concepts
During 2009, the demand for LCD televisions appeared to be falling. At the same time, some industry observers expected that several smaller television manufacturers might exit the market. Use a demand-and-supply graph to analyze the effects of these ..
Reflect on the notion of fiscal union within the European Union. Why is it becoming necessary? Can it be achieved quickly enough to avert financial disaster within the trading bloc?
Economist tell stories as the vending machine story:
In what industry will a given percentage increase in production workers result in the largest percentage increase in output.
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