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Question: Use the CPI values in Figure to calculate the inflation rate between 1970 and 1980. If your wages went from $4 per hour to $6 per hour over this period, would the real wage have increased, decreased, or remained constant? Explain.
The cost of a water jet machine to be used for slicing cheese is $45,640. The machine will generate net annual income of $10,000 during its useful life of 7 years. Determine the rate of return of on investment in this machine. Express the answer as a..
The success or failure of economic policy with regard to the twin goals may be measured by the
q.midcontinent plastics makes 80 fiberglass truck hoods every day for large truck manufacturers. each hood sells for
Explain how a recession can be understood using the concepts of leakages and injections. Explain what Keynes meant by the liquidity trap.
Empirical estimates of the price elasticity of demand suggest that the demand for household consumption of alcoholic beverages is
Consider two countries, the United States and India, producing two commodities, food and clothing. The United States needs one and a half hours of labor to produce a unit of food and one hour to produce a unit of clothing. Draw the production possibi..
We are concerned with the water quality in the Mississippi River. There are 4 groups of people who use the river: environmentalists, fishermen, sightseers, and wastewater plant executives. What is the efficient level of water quality?
Discuss the pros and cons of the two “advanced” forms of estimating energy demand. What do they excel at and where are they lacking? How might policy changes be built into the models? Assume the following two equations for the extraction of a natural..
If we start with the premise that the US economy is a consumer driven (consumption) economy, would consumers saving their money hurt the economy? If there are more investment opportunities in the US vs other countries, doesn't this speak to the healt..
The publisher sold the textbooks to university bookstores nationwide for 3 million euros. The university bookstores received 4 million euros from students in exchange for the books.
The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $30,000 per year. The store is located on prime real estate in a college town. World of Vide..
All 500 consumers in a market have identical demand for a product that is described by individual demand curves P=40-2q. A monopolist produces the product and has a cost function of TC(Q)=10000+8Q. What is the monopolist's maximum profit if it uses a..
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