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1) If the economy in a period of growth and is experiencing unwanted inflation, should the government raise or lower interest rates? Why?
2) Why are some products, such as fruit, so susceptible to the supply/demand issue and others, such as gasoline, not? For instance, if the price of oranges goes up by 30%, consumption goes down dramatically, but it the price of gasoline goes up by 100%, consumption only goes down by a small amount.
3 ) There is a lot in the news about capitalism and socialism, and it appears that the words are thrown around without a lot of understanding about what they actually mean. Your assignment is to research both "isms" and find the following:1. 5 positives for each system2. 5 negatives for each system3. Which one do you think is better for Business?4. Which one do you think is better for Individuals?5. After doing this research and taking the fun quiz, where on this scale do you fall personally?
Qs= 3p Qd= 100-2p a) Suppose a tax of $5 is imposed on the buyer. What will be the price paid by the buyer after this tax What will be the price received by the seller What quantity is sold Show your calculation.
gives data on X (net profits after tax in U.S. manufacturing industries [$, in millions]) and Y (cash dividend paid quarterly in manufacturing industries [$, in millions]) for years 1974 to 1986.
A geometrically increasing series of 20 end of year payments is deposited to fund an account. The first payment is $20,000, the geometric factor is 4%. The account is used for retirement purposes and will produce 30 consecutive
A small country can import a good at a world price of 10 per unit. The domestic supply curve of the good is S = 50 + 5P. The domestic demand curve is D = 400 - 10P. In addition, each unit of production yields a marginal social benefit of 10. a. C..
The real risk-free rate is 3.3%. Inflation is expected to be 3.15% this year, 4.25% next year, and then 3.4% thereafter. The maturity risk premium is estimated to be 0.05(t - 1)%, where t = number of years to maturity. What is the yield on a 7-yea..
The mayor considers engaging in direct quantity regulation (also called "command- and-control") and declares that each firm must engage in 42.5 units of pollution abate- ment. If the plants are controlled by the same firm, would it be socially optima..
Natural real GDP grows by 3 percent per year over the next five years, but then grows by 4 percent in the second year, 5.5 percent in the third year, 4.2 percent in the fourth year, and 3.5 percent in the fifth year. Calculate the cumulative loss..
If coffee price declines by 2%, what is the expected percent change in consumer demand (assuming there are no other changes that would affect demand for coffee) What is the expected change in revenue derived from coffee sales
The total operating revenues of a public transportation authority are $100 million while its total operating costs are $120 million. The price of a ride is $1 and the price elasticity of demand for public transportation has been estimated to be -0..
One farmer can grow 1,500 bushels of corn on 2 acre of land with 300 hours of labor and 25 pounds of seed. Another farmer can grow 1,500 bushels of corn on 1 acre of land with 200 hours of labor and 25 pounds of seed.
You'll earn $0.50 on each bagel, $0.50 on each cup of coffee, and $1.00 on the other items. Salaries, equipment, and rent cost about $100,000 per year. What is the break-even quantity of bagels.
Let a linear demand function be expressed as Q = a + bP, where b
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