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In 2013, the furniture store PB produced 10 mahogany desks. One of them is sold to Jeanine for $3,259, later that same year Jeanine sold the desk to Pamela for $1,802. The remaining desks were not sold to anyone that year and stay in PB's inventory at a value of $1,862 for each desk. How much was added to GDP from the previously mentioned transactions?
Calculate firm 1's profit-maximizing output and profits in the absence of potential competition and calculate the output and profits of both firms in case firm 1 accommodates entry.
Suppose a nation picks 1000 young adults at random to serve in the army. Illustrate what information do you need to determine the cost of using these people in the Army.
For every firm in group B , long-run ATC curve is U-shaped and intersects the long-run MC curve when ATC = 10 and output is 6.
Assume an open, mixed economy (C + I + G + X = real GDP) and an MPS of .2. Explain if it would be expansionary, contractionary, or useless to the economy to increase government expenditures by $50 billion and also increase taxes by $50 billion.
Your current salary is $70,000 per year and you are planning to retire in 25 years from now. You anticipate that your annual salary will increase by $3,500 each year. You plan to deposit 5% of your yearly salary into a retirement fund that earns 6.75..
The broader measure M2, however, since it encompasses most significant forms of money individuals may hold, resolves the problem. The shifts in asset holdings take place WITHIN the broader measure. Explain why M2 velocity should be more predictable ..
What would happen if suppliers charge less than the equilibrium price for your good or service.
q1. how could you use cost volume profit analysis in a products of choice. explain its benefits and limitationsq2.
An alternative way for the government to encourage home ownership would be to offer a tax credit instead of a tax deduction. Explain how does this alter its budget if k=0.25.
Many argue that breaking up a monopoly is a Pareto-efficient change. This interpretation cannot be so because breaking up a monopoly makes its owners (or shareholders) worse off. Do you agree or disagree.
Explain why do national income accountants compare the marker value of the total outputs in various years rather than actual physical volumes of production.
Explain how much would the combined production of pineapples increase for the two islands due to trade. How much would the combined production of pearls increase.
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