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My parents are considering buying one new car, but they can't decide which of their current cars to replace.
My mother drives an old Honda Pilot (20 MPG) and would replace it with a new Nissan Rogue (30 MPG) as she needs the space provided by the SUV. Meanwhile, my father drives an old Honda Civic (30 MPG) and wants to replace it with a Toyota Camry (40 MPG). They both drive 10,000 miles per year.
1. Would replacing my mother or father's car save more gasoline annually?
2. Explain how this relates to the MPG Illusion. How could the US fix the MPG illusion?
In January, the interest rate is 5 percent and firms borrow $50 billion per month for investment projects. In February, the Federal government doubles its monthly borrowing from $25 billion to $50 billion. That drives the interest rate up to 7 percen..
Professor Grubert of MIT points out that nearly half of federal government spending is on social insurance programs, like social security, Medicare and Medicaid, Supplemental Nutrition Assistance Program or food stamps, the Earned Income Tax Credit, ..
A parish in the state is planning to construct a new bridge across the local river. The initial cost for the bridge will amount to $7,000,000. Annual maintenance and repairs will amount to $25,000 for each of the first five years, to $30,000 for each..
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Analyze this statement in terms of your assessment of Marx as economist also as a philosopher.
Suppose a firm finds that the marginal product of capital is 60 and the marginal product of labor is 20. If the price of capital is $6 and the price of labor is $2.50, describe how the firm should adjust its mix of capital and labor? What will be the..
Between February 2008 and Summer 2009 the Fed supplemented its open market operations with a greatly expanded program of direct lending (both overnight and short term 28 and 84 day loans) to commercial banks, Explain why the Fed created all these ex..
If the interest rate is 5%, what is the implicit rental price of the warehouse?
A new product will generate net revenues of $600,000 per year. The interest rate is 10%.
Suppose E-Mobile purchases every gas company in the world and set their prices. Then it would have a control of the gas market with no other competition. Thus E-Mobile becomes a monopolist in providing gas. The market demand curve faced by E-Mobile i..
Suppose you purchase a $5,000 bond that pays 7 percent interest annually and matures in five years. if the inflation rate in recent years has been steady at 3 percent annually, what is the estimated real rate of interest?
If you were starting a new business, what kind of relationship would you want to have with your employees? How would you go about trying to achieve this?
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