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1. Describe the circular flow model of the free-market system.
2. How do consumers use cost-benefit analysis? Why do consumers make different decisions using this process?
3. Name two different market structures. Describe how and why they each have a different competitive situation.
4. What is the Law of Supply and Demand? Explain how increases and decreases in supply and demand affect prices.
5. What is the business cycle? What causes changes from one phase of the business cycle to another?
A mine is for sale for $240,000. It is believed the mine will produce a profit of $65,000 the first year, but the profit will decline $5,000 a year after that, eventually reaching zero, whereupon the mine will be worthless. What rate of return would ..
From the College Scorecard, average costs of attending UCR is $13,144. Average salary for UCR attendees is $48,700. Average salary of someone who does not attend college is roughly $33,800 ($651/week from slides x 52 weeks). Suppose everyone retire..
Compared to fixed interest rates, variable rates are riskier for the borrower but less risky for the lender. Compared to fixed interest rates, variable rates are riskier for the lender but less risky for the borrower. Variable rates are equally risky..
How your organization's production function is related to its marginal product of labor.
Suppose you are advising a small country such as Romania on whether to print its own or to use the money of its larger neighbor such as the European Union. What are the costs and the benefits of a national money?
What are the equilibrium price and quantity in this market? At the market equilibrium, what is the price elasticity of demand and the income elasticity of demand?
Describe the two major types of administrative agencies: executive and independent. Why is it important to have independent agencies?
What are politicians more likely to prefer: expansionary fiscal policy or contractionary fiscal policy? Does your answer suggest a difficulty for implementing a consistent counter cyclical fiscal policy?
What is the rate of return for the following project? It costs $300,000 to start and returns $45,000 the first year
Suppose it takes a total of 100 hours to produce a car (mathematically speaking, this means one hour of work “produces 0.01 cars”). If the average wage in car making is $50 per hour, and each car needs $1,000 worth of inputs other than labor, What is..
Baldwin's product Bell has material costs that are rising from $6.82 to $7.82. Assume that period costs and other labor costs remain unchanged.
A nation’s aggregate real income is growing at an annual rate of 3.3 percent, and its current rate of growth of per capita real income is 0.4 percent. What is the rate of population growth in this nation?
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