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Contact a car dealer and choose a car to evaluate a buy-versus-lease decision (keep it reasonable-no Lamborghinis). Tell the people at the dealership that you are a student working on an assignment.Be truthful and don't argue; if they don't want to help you, leave and find a friendlier dealer. For both buying and leasing, show all assumptions, costs, and calculations. Do not include the cost of maintenance, gasoline, oil, water, fluids, and other routine expenses in your calculations. Determine the car's sales price (no need to negotiate) and the costs for sales tax, license, and fees. Estimate the "Blue Book value" in 5 years. Determine the monthly payment based on a 5-year loan at 9% interest. Assume that your down payment is large enough to cover only the sales tax, license, and fees. Calculate the equivalent uniform monthly cost of owning the car. Identify the costs to lease the car (if available assume a 5-year lease). This includes the monthly lease payment, required down payments, and any return fees that are required. Calculate the equivalent uniform monthly cost of leasing the car. The salesperson probably does not have the answers to many of these questions. Write a oneto two-page memo detailing the costs. Make a recommendation: Should you own or lease your car? Include nonfinancial items and potential financial items in your conclusions, such as driving habits and whether you are likely to drive more than the allowed number of miles dictated in the lease.
Suppose that, in a bold move, the owners of the movie theater in Moscow decide to raise the price of general admission movie tickets from $7 to $9. Calculate the price elasticity of demand for those under 30 years old. Then calculate the price elasti..
When the wage rate increases, individuals recognize that the opportunity cost of leisure has risen, choose to substitute labor for leisure, and thus offer to work more hours. This is called the
What group defines the recession timeframe and how do they do it? What is the status of the economy today and how do you know?
A country reported nominal GDP of $115 billion in 2010 and $125 billion in 2009. It also reported a GDP deflator of 85 in 2010 and 100 in 2009.
Early-childhood environmental factors are said to be important determinants of school performance. What are some of these factors, how important do you think they are, and what might be done to ensure that these factors are not negative?
Choose a product of your interest, identify the product with a market (Perfect Competition, Monopoly, Oligopoly and Monopolistic Competition), their role in the market, their future in the competitive world, any suggestions you have for this produ..
What is a business cycle? With an aid of a graph, identify the phases of the business cycle. Why would economist expect unemployment to fall during an economy’s expansionary phrase and to rise during a contractionary phrase? Discuss and make referenc..
What is the present worth of the following cash flow stream? Assume 8% interest and an initial purchase price of $30,000 is included (4 pts)
In the long run the interest rate adjusts to adjust to balance the supply and demand for loan able funds. In the short run, the interest rate adjusts to balance the supply and demand for money. Discuss.
Suppose there are two types of Scottish beer, Skullsplitter and Dragonhead Scout. Draw indifference curve for the following consumer (put Skullsplitter on the x-axis and Dragonhead Stout on the y-axis. Angus likes variety and prefers to drink Skullsp..
According to 2009 data on the U.S. population which of the following was correct? Adults had higher labor-force participation rates and higher rates of unemployment compared to teenagers. Adults had higher labor-force participation rates and lower ra..
Politicians are often heard saying that tuition at state universities should be kept low "to make education equally accessible to all residents of the state, regardless of income." Assuming that state funding for the universities is held constant; de..
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