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The purchase of a car requires a $20,245 loan to be repaid in monthly installments for four years at 12% annual real interest rate. If annual inflation rate is 2%, find the exra amount to be paid in 20th month due to inflation.
Consider smoking in a classroom, where students have the right to clean air. What types of externality does smoking in a classroom convey? Explain. How could this externality be solved according to Coase Theorem? Explain. How would it be solved using..
Describe the rationale behind arriving at figures for the natural rate of unemployment, stable prices, and sustainable economic growth.
Suppose that a computer software company controls the operating system market. Although the government knows that the price is higher than it would be in the presence of competition, it believes that such profits are crucial to incentivizing innovati..
Should the government/private citizens be concerned about the size of the national debt? Do you think the country would be better off with zero debt? Are there any positives associated with the debt?
Assume that a competitive firm has the total cost function:
Based on what you have learned about PortionPac, what do you think the owners would claim to be the most important features of doing business with integrity?
This case describes the efforts by Brazilian aircraft maker Embraer to limit the impact of changing exchange rates on its revenues.
Part Two of your textbook covers chapters four through seven and is titled "International Sales, Credits, and the Commercial Transaction." Describe the Convention on Contracts for the International Sale of Goods (CISG) and explain why it is importan..
The salvage value at the end of five years is 0. The potential revenue in any given year is independent of any other year. Determine the mean and standard deviation of the present worth, using an interest rate of 12%.
Describe the Stolper-samuelson theory of trade. How does it differ from the factor endowment model? What are its predicted effects on wage-inequality in (a) industrialized countries that are capital abundant and (b) developing countries that are labo..
Show why the firm should not be charged a per-unit tax on the firms output to compensate for the pollution it discharged into a major river. Devise a game plan for responding to the questions that will be raised in the joint session of the subcomm..
Discuss with your classmates the economic effects of the healthcare legislation (Affordable Care Act) recently passed by Congress. You don't have to do a lot of research, but do Google "Affordable Care Act" and look at some major provisions and discu..
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