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If we expect our currency to appreciate with respect to the currency of our Northern neighbor and the interest rates are the same in both nations which nation does it make sense for us to invest in? Show your work.
Describe the relation between marginal and average costs. Describe the relation between marginal and average fixed costs. Describe the relation between marginal and average variable costs.
Most economists want a 0% target for unemployment. The current natural rate of unemployment is thought to be somewhere around 5%. If the economy is above full employment it causes higher than normal unemployment. In a closed economy, inflation repres..
A non-discriminating monoponist firm’s demand for labor can be written as VMPE = 30 - 0.005E. Labor is supplied to the firm according to w = 5 + 0.01E. Thus the firm’s marginal cost of hiring workers when it hires off of this supply schedule is MCE =..
After the September 11th attacks, one division of the Pentagon began to set up a Policy Analysis Market (PAM), a prediction market for political events in the Middle East. Suppose Chad believes that the price of oil will be higher in the future and b..
Fidelity Life Insurance has a document imaging system that needs replacement. A local salesperson quoted a cost of $10, 000 with an estimated salvage of $900 after 5 or more years. If the system is expected to save $1700 per year in clerical time, fi..
Briefly explain whether it is possible for firms in a perfectly competitive market to earn zero economic profit even if they have incurred a sunk cost upon entry into the market. Given an example of such a cost.
Department of Health and Human Services, but rather with the Internal Revenue Service. What evidence can you cite to support your position?
Discuss the concept of the “optimal amount of inequality.” What are some of the practical problems in determining how much inequality really is optimal?
In the late 1990's, car leasing was very popular in the United States. A customer would lease a car from the manufacturer for a set term, usually two years, and then have the option of keeping the car. Why was the manufacturer losing money on this pr..
What are the four stages of team performance? How does effective management of each stage ensure team success? How can managers and team leaders ensure success in situations when physicians are involved? Name the two situations in which most organiz..
According to Classical Economists which type of fiscal policy financing produces inflation?
In the below scenario, if John won't change his loud morning departure, what can be a method to internalize the cost? John, a computer engineer lives in a suburban neighborhood and rides his motorcycle to his work at 6:30 each morning. He innocently ..
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