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Biff owns and operates a golf driving range on land that he also owns. Last year his accountant calculated that his driving range makes $50,000 profits per year. Last year a property management company offered to lease Biff's land from him for $80,000 per year forever. Calculate the economic profits of Biff's driving range last year. If the property management company offers the same land lease deal to Biff this year, should he take the deal? Explain why or why not, and use your calculation of Biff's economic profits in your explanation. (This is a simplified question that you must answer; the answer "insufficient information" is unacceptable.)
Should the Federal Reserve Board focus exclusively on the problem of inflation? - What other goals are appropriate for Federal Reserve policy?
What is the minimum level of v for which the union does not require any compensation for change in the first period? Interpret your result in light of the model studied in class. When does the model suggest that innovation will be stalled by a uni..
In a multibank system, an individual bank makes loans only up to the level of its excess reserves, while the whole commercial banking system can lend out money that is a multiple of the original bank's excess reserves. Why is there this difference..
Suppose you expect interest rates to increase in the future. You are not indifferent toward interest rate risk and the desire to maximize expected return. If you hold a portfolio consisting of 50 percent
A long strike in the region of Roquefort-sur-Soulzon is expected to increase the price of that cheese by 16.5% at the store. Based on this information, the number of bottles of Macallan demanded will
different end points in their vision about the economy-Smith claims we end, as Heilbroner puts it, in "Vahalla" while Ricardo claims we end a relatively dismal steady state. In your thought paper, explore why they reach these strikingly different ..
How do they affect the economy in terms of growth, labor force, and price of labor
Realizing that the major function of benefit is to allocate resources according to consumer preferences, why are some groups in United States extremely critical of companies that earn increasing benefits
How do companies keep mobile data secure for customers? How do companies use technology to create competitive advantage?
Compute the expected value (revenue) from each project. Compute the coefficient of variation of each project, and find out which project should the company choose. Compute the variance and standard deviation of expected value from each project.
What do we mean by "environmentally sustainable development?" Are there serious economic costs of pursuing sustainable development as opposed to usual economic growth?
Consider the question of whether the United States should adopt a gold standard, remain in the current float-based system, or use some other system. Consider the impossible trinity mentioned above and carefully define all terms and concepts t..
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