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1. Draw a graph representing a hypothetical economy. Carefully label the two axes, the S + T + IM curve, the I + G +EX curve, and the equilibrium level of real GDP. Illustrate the effect of an increase in the level of autonomous saving.
2. Explain the role of inventories in keeping actual expenditures equal to real GDP.
3. Who was John Maynard Keynes and what did he contribute to economics?
A local video store estimates their average customer's demand per year is Q = 20 - 4P, and knows the marginal cost of each rental is $1.00. How much should the store charge for an annual membership in order to extract consumer surplus.
Consider a simultaneous move quantity-setting game with two firms facing a demand curve p = 100 - q. Both firms have marginal cost of 20. Suppose one firm maximizes profit and the other maximizes revenue, but both take into account the other firm'..
First Cost: $500 Uniform Annual Benefit: $122 Salvage Value: $0 (a) Construct a choice table for interest rates from 0% to 100% (b) If the minimum attractive rate of return is 8% which alternative should be selected
Kristina knows that deadweight loss is something that this small town can do without. She suggests that each household be required to pay a fixed amount just to receive any electricity at all, and then a per-unit charge for electricity.
The estimated salvage value was $30,000. At the end of the 5th year the asset was sold for $90,000. From a tax perspective, what is happening at the time of disposal, and what is the dollar amount.
A $90,000 investment is made. Over a 5 year period, a return of $30,000 occures at the end of the first year. Each successive year yields a return that is 10 percent less than the previous year's return. If money is worth 5 percent.
Maria can read 20 pages of economics in an hour. She can also read 50 pages of sociology in an hour. She spends 5 hours per day studying. a.) Draw Maria's production possibilities frontier for reading economics and sociology.
coordinate axes on a piece of graph paper. Label horizontal axixs from 0-50 units and vertical axis from $0- $20 per unit. Draw a demand curve that intersects the vertical axis at $10 and the horizontal axis at 40 units.
Consider how unemployment would affect the Solow growth model. Suppose that output is produced according to the production function Y = K^a(1-U)L^1-a , where K is capital, L is the labor force, and u is the natural rate of unemployment.
The Oil Price Information Center reports the mean price per gallon of regular gasoline is $3.79 with a population standard deviation of $0.18. Assume a random sample of 40 gasoline stations is selected.
A gradient series is deposited for 15 years in an interest bearing account. The first deposit is $15,000, the annual gradient factor is $1,000. At the end of the 16th year, withdrawals from the account begin with a first sum of $50,000.
anderson county has 35 older-model school buses that will be salvaged for $5,000 each. these buses cost $144,000 per year for fuel and maintenance. now the county will purchase 35 new school buses for $ 40,000 each.
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