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(a) Identify and describe two aspects of firms' credit policy. (b) Identify one difference in the credit policies of different firms and explain why this difference may be important to consumers. (c) Can a firm's credit policy hurt it? Explain. (d) Explain why many large firms (e.g., Sears Department Store and General Motors Corporation) have their own financial subsidiary. (e) Will sales by firms through the Internet shopping networks increase much, once a safe, well-functioning, standardized, easy-to-use system has been developed for credit purchases? Explain.
Provide one example of a good the US would be considered to have a comparative advantage in producing. Why do you think the U.S. has this comparative advantage.
Explain and discuss the mechanisms by which this has occurred, and contrast our experience with: a) the recent performance of many NICs (newly-industrializing-countries) in the last few decades
Draw a diagram showing the current situation of the firm. In addition to the above information, suppose the price of the output is $13/unit, if the firm wants to maximize its profit, what should it do? Explain in detail with the aid of a diagram.
Illustrate the stated direction of recent monetary policy. What recent actions have the Federal Reserve taken to confirm that direction
Do incumbent politicians utilize their power and influence to get re-elected. Is this a "valid" use of political power. How does this impact business firms. Please discuss.
Would an attempt to decrease the budget deficit not increase it. Does today's deficit not create tomorrow's surplus.
If deficit spending -crowds out some private investment, could future generations become worse off? If external financing eliminates crowding out, are future generations thereby protected?
Illustrate each of the following events using a demand and supply diagram for bananas.
What would an economists say that the burden of the FICA tax is shared equally. Who bears more of the tax burden Workers or employers.
Discuss John Maynard Keynes' contribution to the theories of Macroeconomics. Why was he such an important economist.
Explain how should we expect this phoenomenon affect the US economy at the macro-level, short run and long run.
If the customer is rational explain how can use affect their economic decisions
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