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Changes in the federal funds interest rate often lead to similar changes in the prime interest rate (i.e. the short-term interest rate banks charge their best business loan customers). Indicate whether this statement is TRUE or FALSE; and then provide support for your answer.
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If it had doubled its land as well as labor, production would have been 325000 bushels. Does it have increasing, decreasing or constant returns to scale.
Describe Okun's law. Do you believe Okun's law holds up in the current economy? Explain the relationship between unemployment and gross national product (GNP).
An automotive part must be machined to close tolerances to be acceptable to customers. Production specifications call for a maximum variance in the lengths of the parts of .0004. Suppose the sample variance for 30 parts turns out to be s² = .0005. Us..
The general demand for good X is: Qd = 2500 – 8Px + 0.1M + 12Py. If M = $50,000 and Py = $250, what is the demand function? what is the inverse demand function? fully explain the coefficient for M.
What is the social optimum? What specific tax per unit of output of gunk results in the social optimum.
Currently a heating unit for a small building is very old and inefficient. The owner is contemplating on replacing it with a variable air volume system that costs $100,000 and will save 450,000 kWh each year. Base your decision on the (a) present wor..
Consider this statement. “It is estimated that leaky pipes and dripping faucets are the source of hundreds of thousands of dollars of lost water each year. Business firms could reduce waste by inspecting more pipes thoroughly and repairing water leak..
Illustrate what happens if the consumer faces a borrowing constraint that prevents her from borrowing.
An on-line retailer sells 12,000 pairs of shoes each month. A pair of shoes costs $50 on average, and the retailer incurs an annual inventory carrying rate of 52 percent. For what value of fixed cost per order would an order size of 8,000 units per r..
For each firm within an industry, T = X(X - 1)2 + 25X; where T is the long-run cost of the firm, and X is the firm's level of output. For the industry as a whole, Y = 34 - p; where Y is total consumer demand for the industry's product, and p is the p..
Explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy when promoting economic activity.
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