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Q1. Why was the Teamsters Union so opposed to allowing Mexican truckers to deliver their goods in the United States? As a consumer, do you agree with the Teamsters? Why or why not?
Q2. Assume an interest rate of 7% in answering the following question.
(a) You would be indifferent between getting $12 now and X dollars two years from now. Illustrate what is X?
(b) Illustrate what is the present value of an asset that pays $20 one year from now, $15 two years from now, and $45 ten years from now?
(c) Illustrate what is the formula for the present value of an asset that pays $8 per year every year for the next 10 years, and nothing thereafter? Use the formula to compute the present value of this asset.
(d) Illustrate what is the formula for the present value of an asset that pays $8 per year forever? Use the formula to compute the present value of this asset.
In what industry will a given percentage increase in production workers result in the largest percentage increase in output.
Decrease will have on the desired proportions of capital and labor used in producing the given level of output at minimum total cost.
illustrate what does this mean for the survival of small firms in the industry.
Sheila budgets $9 per week for her morning coffee with milk. She likes it only if it is prepared with 4 parts of coffee and 1 part milk.
Suppose that the US government determines that cigarette smoking creates social cost not reflected in the current market price an equilibrium quantity of cigarettes.
As an analyst at the Treasury Department, you have been asked to predict the behavior of key macroeconomic variables for different scenarios on the state of policy between the US and Europe.
Repeat these calculations for the third, fourth, and fifth years, assuming that the Government taxes at a rate each year and has noninterest expenditures annually.
How do you recover an investment when the residual value is significantly less than the loan value.
Over the long run historically, real wages produce about same pace as labor productivity.
Solve for equilibrium real output and also solve for the equilibrium interest rate.
Draw his budget constraint in terms of S and T. What is the slope of the budget constraint and how does it relate to the relative price.
What are the strengths and weaknesses of the measure of welfare used by many economists: consumer welfare plus producer surplus.
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