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A lot on the outskirts of town costs $35,000. The annual property taxes are calculated at 3.5% of the assessed value of $28,000. Assume that the lot will not be reassessed for the next 4 years (property taxes remain constant) and that the value increases by 20% before it is sold at the end of 4 years. What is the IRR?
Explain how a budget deficit might lead to an appreciating currency and a trade deficit. Explain the introduction of the foreign sector makes the fiscal policy tool of the budget deficit less effective in stimulating the open, as compared to the clos..
For the closed-economy, one-period model, suppose that U(C,I) = In C + βl, and F(K,N)= ZK^(a)N^(1-a), where β>0 and 0
How could you use the concepts of marginal cost and marginal revenue to maximize profit? What information do you need to determine this? Without this information, how would you make a decision?
What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries, and particularly China? What are the potential costs and risks to Apple? In addition to Apple, who else benefits from Apple's decision to outsource assembl..
Suppose disposable income increases by $2,000. As a result, consumption increases by $1,500. Answer the following questions based on this information. Where appropriate, enter your answer as a decimal rather than as a percentage. The increase in savi..
q.johnny works for the great big cookie company gbc which buys labor at a wage of 1 an hour and uses it to produce
On September 18, 2003, hurricane Isabel struck the North Carolina Coast, causing extensive damage. For several days prior to reaching land the National Hurricane Center had been predicting the hurricane would come on shore between Cape Fear, North Ca..
What are the principles that lawmakers should follow in setting up taxes? Explain the three types of tax structure with respect to income. Which of the three types of tax structure is most fair in your opinion and explain why?
The recent merger of US Air and American Airlines received both national and local attention. The US Department of Justice contested the merger on the basis it would produce harmful monopoly-like behavior in the airline industry. Develop an argument ..
Find the relationship between marginal costs and benefits at this level. In general what assumptions are implicit in such an analysis?
Explain how the six external forces could combine/integrate together to have more complex effects on changes in the workplace. For example, technological changes could accelerate reorganization of work. Give some real examples to illustrate the inter..
Suppose that an economy is producing on its production possibilities curve but is not producing quantities of each good where the marginal benefit equals the marginal cost for each good.
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