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1. Distinguish between investment and capital.
2. Explain the difference between an invention and an innovation. Give an example of each.
3. What is the difference between interest and profit? Who earns interest, in return for what contribution to production? Who earns economic profit, in return for what contribution to production?
Solve the forecast model
Are the differences in rates of return in (d) consistent with the uncovered interest parity condition? Why or why not?
What is the lowest price above which cords will be supplied?
Your car dealer is willing to lease you a new car for $245 a month for 48 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 6.5 percent, what is the current value of..
The earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow at 8% per year in the future. Carpetto's common stock sells for $27.75 per share, its last dividend was $1.50, and it will pay a dividend of $1.62 a..
A. Ireland is a very small open economy. Trace the likely economic consequences if the government used an expansionary fiscal policy to stimulate the economy. B. GNP at Current Market Prices for 2007 was 60% higher than the figure for 2000. State a..
Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose that a model of the economy suggests that the real interest rate is..
Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable..
An asset is purchased for $150,000. The asset is depreciated by using MACRS depreciation and a 5-year recovery period. At the end of the third year of use, the business changes its product mix and disposes of the asset.
Book sales are reaching record highs even as "bricks and mortar" bookstores such as Barnes and Noble are struggling financially? Explain this paradox in the context of market areas, technology, and the spatial relationship between supply and deman..
Spenser's Superior Stoves advertises a one-day sale on electric stoves. The ad specifies that no phone orders are accepted and that the purchaser must transport the stove. Why does the firm include these restrictions?
Is there an efficiency gain compared with your answer in the previous question? Use the estat abond command to test whether the errors air are serially =correlated. Use the estat sargan command to test whether the model is correctly specified.
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