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There are linkages between the microeconomic decisions made by managers and the macroeconomic environment. There are numerous examples from the current recession of company layoffs at the micro level, directly influenced by the decline in economic activity at the macro level.
For this assignment, research this linkage. How did the recession impact businesses/managers at the macro and micro levels? You may use one company as the basis of your research.
Arian is about to borrow $2,587.11 from his uncle. He has an option to repay the loan at the end of year 4 with 3.11% simple interest per year or with 6.8% interest per year, compounded annually. What is the difference of the total interest paid over..
The sales manager of a retail outlet suggests that the best way to increase the number of customers is to have a sale. If a 10 percent price cut doesn’t bring in enough customers, then he’ll cut prices 20 percent. Increased cash flow should take care..
Consider a group of 10 friends who are considering going on a road trip (is that still a thing you kids do these days, or do you just sit around and look computers?). In determining whether or not to go, each friend considers both how much they would..
What is the present value of a series of 48 quarterly deposits (starting at quarter 1) when the first deposit is $500 and the deposits increase by $50 each quarter starting with the second quarter? The nominal annual interest rate is 10% and is compo..
According to the law of diminishing marginal returns, which of the following is true?
There are 10,000 identical individuals in the market for medical service X, each with a demand function given by Qdx=12-2Px and 1,000 producers of medical service X each with the function Qsx=20Px. Find the market demand function and the market suppl..
What is the difference between an economic profit and an accounting profit, give an example? 3. Discuss the difference between diseconomies of scale and diminishing returns. Based on the cost curves which is more likely in businesses?
These forecasts for the Internet creating “perfectly competitive” markets were based on the competitive model we have presented in this chapter. Do you think the Internet has helped create more competitive markets or less? Why?
How does an increase in income tax rate affect economy? Please show it using AD/AS frameowrk. Expansionary fiscal policy: what does it mean? How does it work? Contractionary fiscal policy: what does it mean? How does it work? Please define spending m..
Describe an environment in which permit trading can contribute to economic efficiency. How do permits make such a contribution Why in a traditional model are permits and Pigouvian taxes considered equivalent in implementation? Give a reason that in p..
Because real investment by foreigners expands a country’s capital stock and hence presumably its output and income, why should any country consider restricting foreign investment?
Explain how will La Nina affect the price of Chilean wine. Assuming LaNina does not impact the California wine producing region, how will La Nina impact the market for Californian wine.
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