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If make an initial investment of $5000 at 6% per month compounded monthly. How much would it be worth in 3 years?. Draw a cash flow diagram of what this would look like.
What rate of return would you expect on a 1 year treasury security, assuming the pure expectation theory is valid? use arithmetic average.
Suppose the US has a Debt Limit Law according to which government debt cannot be higher than $120 million. What are the options for Obama?
Discuss the source of tension between cooperation and self-interest in a market characterized by oligopoly. Use an example of an actual cartel arrangement to demonstrate why this tension creates instability in cartels.
If both demand decreases and supply increases then for sure. Which of the following will decrease the demand for chicken?
Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they can remodel in a week is described by the Cobb-Douglas production function Q = F(L,K) = 10L0.5k0.5, where L is their number of workers and K is units of..
Suppose the supply curve for a good shifts rightward, causing th equilibrium price to decrease. The decrease in the price of the good results in:
Explain Thorstein Veblen's theory of consumption. Is economic behavior, and consumption in particular, driven by utilitarian impulses or socio-cultural factors? What is the point of conspicuous consumption and conspicuous leisure?
The chart on the following page shows the average daily demand for tokens on a major urban rapid transit system. What is the elasticity of demand at a fare of $2.50/token? Is the revenue maximizing fare higher than, lower than or equal to $2.50/token..
The wheat harvesting season in the American Midwest is short, and most farmers deliver their truckloads of wheat to a giant central storage bin within a two-week span. It will cost $200,000 to enlarge the bin during off-season. How long will it take ..
Suppose that Omar’s marginal utility for cups of coffee is constant at 1.5 utile per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the..
Elucidate how long must a quota be in effect to have an impact. Using a demand-and-supply diagram, illustrate and explain the net welfare loss from imposing such a quota.
What are the major institutional changes that take place with economic development? Are these institutional changes causes or mere correlations of growth? Or is growth a cause of institutional change?
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