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1. Explain the basic economic problem of scarcity.
2. List and discuss the two (2) main factors of economic growth according to the production possibility frontier model.
3. Analyse the consumer equilibrium condition according to utility theory. Include in your answer the provision of its formula
Supposes cost of consumer market basket rose from $200 in base year to $225 in current year. Calculate CPI in current year and percentage change in prices between base year and current year.
What is the present worth of a P500 annuity starting at the end of the third year and continuing to the end of the fourth year, if the annual interest rate is 1
Accordingly, calculate the own price elasticity of demand for Good A. Is demand for Good A elastic, inelastic, or unit elastic?
Using the results from previous question (the equilibrium price and quantity), which of the following is true or false? Explain (10 pts., 2.5 pts. each). Equilibrium quantity decreased by 4 units.(explain)
What are the factors that affect price elasticity of demand and price elasticity of supply? What are some applications of each?
Interest payments on which bonds that make up the U.S. public debt is considered to be the greatest burden on the U.S. economy? Bonds: a) owned by Americans. b) owned by the Rest of the World. c) owned by the Social Security trust fund. d) owned by t..
Monopolistic competitition differs from perfect competition primary because in monopolistic competition,
An asset costs $20,000 and is in the 5 year property class. O&M costs are $2,000 the first year, $3,000 the second year, $4,000 the third year, etc. Salvage values are $12,000 after one year, $9,000 after 2 years, $6,000 after 3 years, and $4,000 the..
You buy a bond for $1118 that pays $20 interest ever 6 months. It will reach maturity in 9 years at which time it will return its face value of 1000 plus the final $20 interest payment. What is the pre-tax annual rate of return on this bond? Estimate..
If the long-run aggregate supply curve is vertical, then the Phillips curve
Suppose there is a permanent reduction in the liquidity demand for money in an economy due to the introduction of credit cards.
Consider an organization in your field or industry. Describe the essential systems necessary to facilitate continuous change
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