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Living Standards
1. How do living standards in the U.S. compare to living standards in Bangladesh or Indonesia? What do you think accounts for the differences?
Reasons to Save
2. What do you think is the main determinant of how much you save, the current interest rate, your current income, your age, or some other factor?
During the 2001, net domestic product = net national income, at facto cost equals $3,300 billion. Net indirect taxes equal $200 billion, depreciation equals $800 billion, and net interest on national debt equals $150 billion. The country’s GDP equals
Suppose you have the following regression equation where SALES = 100s of cars sold per month, PRICE = average actual price paid by customer for car purchases in month, ADV = monthly advertising expenses, SEPT = dummy variable with value 1 for Sept an..
Plot the demand and supply curves for this market. Show the equilibrium price, and quantity for electricity. Label consumer surplus, producer surplus, and cost of goods sold on the figure you have drawn. Compute equilibrium price (P*), equilibrium qu..
Suppose Alphonso's town raise the price of bus tickets from .50 to 1.00 and the price of burgers rises from 2 to 4. why is the opportunity cost of bus tickets unchanged? suppose Alphonso's weekly spending money increases from 10 to 20. how is his bud..
Explain why when using the expenditure method for determining GDP do we not include expenditure on intermediate goods, but when using the income method, we use the income of factors of production for both intermediate and final goods production?
A month later, Bob buys a $1000 government bond from the Fed with this money. A) What happens to the money supply (M1)? Does it increase or decrease? By how much? The money supply decreases by $1000. B) How would this impact Bob's future spending? Un..
The price elasticity of demand is -1.2. What type of elasticity is this?
From Strategy A if the second firm reacts with strategy D. On the other hand, firm 1 may follow strategy B which could return profits of $8mil. Or $9mil. If firm 2 reacts with strategy C or D respectively.
Defective units that go undetected into final assemblies cost $22 each to replace. An inspection process, which would detect and remove all defectives, can be established to test se units.
Explain the difference between "covered interest arbitrage" and "uncovered interest arbitrage". How are these concepts related to efficiency in foreign exchange
Describe the Board of Governors. Be sure to include the number of years that they serve and the importance of appointing them for that number of years, how many members are on the board.
Your company announces that it will pay out a constant annual dividend of $2.00 per share for the next ten years. Following that, the dividend will grow at 4 percent per year and will be paid out in perpetuity at this growth rate (for example, the di..
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