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A contractor estimates maintenance costs for a new backhoe to be $275 for the first month with a monthly increase of 0.5%. The contractor can buy a 4-year maintenance contract for $18,500 at any point. If the contract is purchased at the same time as the back hoe is purchased, the dealer has offered a 10% discount. Use i = 0.75% per month. What should the contractor do? Contributed by Hamed Kashani, Saeid Sadri, and Baabak Ashuri, Georgia Institute of Technology
Some have argued that higher cigarette prices do not deter smoking. While there are many arguments both for and against this view, some find the following argument to be the most persuasive of all. "The laws of supply and demand indicate that higher ..
Why is the stock market affected by predictions that the Federal Reserve will raise interest rates in the near future?
Beautiful people are no better than ordinary people at problem solving, but they are more self-confident about their abilities, and in face-to-face interviews.
If the government decides to increase the monetary amount of disability insurance payments to those who have been permanently disabled, it will make life easier for those who have been disabled. The fact that it could cause some individuals to falsel..
Suppose government purchases amount is $3.5 trillion, transfer payments amount is $0.5 trillion, net interest payments are $0.25 trillion and tax revenue is valued at $2 trillion. Calculate the amount of the government deficit; Calculate the primary ..
which of the following is the best explanation for the state's historic reliance on severance taxes on oil and gas production.
In June, Percy buys 8 cookies and 12 crackers. In July, the price of cookies rises and the price of crackers falls. His June and July budget lines cross at the point (10, 10). In July, Percy might choose to buy 12 cookies. If cookies are an inferior ..
A generous university benefactor has agreed to donate a large amount of money for student scholarships. The money can be provided in one lump sum of $12 million in Year 0 (the current year), or in parts, in which $7 million can be provided at the end..
Does the level of taxation in a closed economy have an impact on national savings?
An argument for making regulated monopolies adopt marginal cost pricing is that this would:
Suppose that Country B has the same amount of net private saving in Year 1 and in Year 2. However, the government of Country B has a budget surplus of $200 billion in Year 1 and a budget surplus of $100 billion in Year 2. Other things equal, this ten..
Many times, government intervenes as a way to maximize the social welfare of the people and society. However, not everyone agrees that this is a good idea. Can you think of an examples where government intervention has actually been regarded as a bur..
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