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Suppose the economic is in recession. Write letter to the chairman of the Federal reserve suggesting how the fed might help the recession. Be sure to carefully and fully explain how a change in monetary policy will affect economic activities.
What are the difference between and income statement and a balance sheet? Explain why a bond is considered to be a loan and a share of stock is not. Why do Corporations issue both? Explain the law of diminishing marginal utility. What are the determi..
Some finance experts advise consumers not to worry about rising gasoline prices, the cost of which can easily be covered by forgoing one takeout meal a month, but to worry about how high energy prices will affect the rest of the economy. For example,..
Denise and Christy have the same preferences and incomes. Just as Denise arrived at the theater to see a play, she discovered that she had lost the $20 ticket she had purchased earlier. If both Denise and Christy are rational and both have enough mon..
How has the emergence of different types of health insurance plans—FFS, health maintenance organizations (HMOs), preferred provider organizations (PPOs), and capitation—affected the trends in healthcare services today?
The discount rate for the stock is 15% and the rate of return on reinvested earnings is also 15%
During the recent 2007-2009 economic contraction, nominal interest rates fell to nearly 0%while the rate of inflation remained positive. What happened to the real interest rate? How would this movement in the real interest rate affect decisions to sa..
Edmund has the utility function U(x, y) = 2xy + 1. The prices of x and y are both $1 and Edmund has an income of $20. How much of each good will he demand? A tax is placed on x so that it now costs Edmund $2 while his income and the price of y stay t..
Assume the public holds a fixed amount of currency and the chartered banks have a desired reserve ratio of 10%. What is the ultimate change in the dollar size of loans caused by the action of the Bank of Canada? What is the ultimate change in the dol..
Your firm has an estimated production function q = 1/2KL^2. Further, the rental rate of capital is $80 and the wage rate is $40. You are considering long-run prospects. Use calculus to derive your firm's long-run cost function.
Do the following events represent business transactions? Explain your answer in each case.
Suppose you compete in a Cournot oligopoly market consisting of 6 firms. The equilibrium market price and quantity are $5 and 10 units, respectively. The marginal cost for each firm is $3. Based on this information we know the price elasticity of dem..
Explain in your own words the TCP/IP core protocols? Describe each layer, what each layers function is, and what protocols exist at each layer.
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