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Discuss if you think policy makers truly represent the citizenry or are they pressured by third party special interest groups that support their campaigns. Should they represent both?
The relationship between Price elasticity of demand and Marginal Revenue can be shown to be: There are two types of customers that come to the Barnegat Fish Company to have their signature crab cakes: An affluent group with a price elasticity of dema..
Discuss how and why the effectiveness of fiscal policy depends upon the slope of the LM curve. Hint: Discuss how the behavioral sensitivities (c1, and c2) determines the LM slope, and how changing c1, and c2 influences the fiscal policy effectiveness..
A company named Highway Data has been given a contract to install highway information signs along a 500 mile portion of interstate 555. The signs will be placed at the end of each 10 mile section. The signs cost $138 each. Data fiber optic cable comm..
Consider a person who can work up to 80 hours each week at a pre-tax wage of $20 per hour but faces a constant 20% payroll tax. Under these conditions, the worker maximizes her utility by choosing to work 50 hours each week. On a single graph, draw t..
Why is a changing target for the Fed Funds interest rate a more accurate indicator of the direction of monetary policy than a change in the discount rate?
Supply and demand in a hypothetical market are given by the following equations: Use these equations to find numeric answers for the six items below: Equilibrium price. Equilibrium quantity. The minimum price that would have to prevail in order for a..
The main discussion question is an interesting one this week, but the realm of exchange rates has a major influence on macroeconomics. As economies become more and more open in trade, the value of a nation's currency can influence GDP and interest ra..
Find and describe an example of an information asymmetry that could give rise to either adverse selection or moral hazard. How is the information asymmetry corrected in your example (if it is)? Are there other methods of correcting the information as..
Compute the Weighted average cost of capital (WACC) assuming the firms cost of debt is 4% and the firms cost of equity is 13.3%.
Suppose that Seth's income increases from $400 to $500 per week, causing Seth to increase his purchases of movies from 3 to 4. The income elasticity of movies is:
What are the implications of this statement, “Inflation is a serious problem that should be avoided at all costs.” Is knowing this information important in the world of business?
q.at a recent board meeting ceo and president got into a heated argument about whether to shut down the firms plant in
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