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Explain why one can refer to corporate debt as a covered call on the value of a corporation with a strike price at the level of the debt (principal plus interest). You can use the unit trust a “corporation” in your answer.
Suppose a wage increase from $19 to $21 an hour increases the number of job applicants from 50 to 64. What is the price elasticity of labor supply?
A license to sell another's products or to use another's name in business is called a
For an individual with $8,000 in annual drug expenses, how much would he/she pay out of pocket in Medicare Part D under the 2006 rules?
An individual who is not an existing client approaches you in early November stating that the income tax return for the financial year has not been prepared or lodged. The individual is aware that tax agents can lodge later than the October 31 dea..
A perfectly competitive firm has the cost curves drawn in the following diagram. If the firm's output sells for $16 per unit, what is the firm's profit-maximizing output? Why?
Assume that the price of x is $2 and the price of y is $1 and Brian has an income of $10. How much does he consume of each good? Assume Brian's income increases to 20$, calculate his demand for each good and explain whether Brian considers x and y to..
Can you provide any examples of Illustrate what kind of equality could be made to offset these increased society costs
Suppose that, in the long run, a pizza firm’s variable costs are V C(Q) = Q2/2 (where Q is the number of pizzas produced each day), its marginal cost is MC(Q) = Q, and there is an avoidable fixed cost of $50 per day. In the long run, there is free en..
The Euro zone fell into deflation in October (see Chart): prices fell by 0,2 % . Italy has experienced deflation for a few months. Unemployment in Italy is over 13% with youth unemployment 43.9% Contractionary policies in Italy have led to a fall in ..
Discuss the differences between formal and informal reports, can you describe what value such elements as documentation, page margins, headings, etc. add to the report?
In Krugman and Obstfeld's International Economics, 8e, Chapter 16, an involved argument is given showing that a permanent fiscal expansion will not affect output even in the short run. It seems to me that this is a saddle point stability argument in ..
Elucidate how the strength of the economy as a whole could affect the marginal benefits also the marginal costs associated with a decision to purchase a home.
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