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Question: Assume a Nissan dealer in the U.S. bought 30 Maximas directly from Japan at a cost of $20,000 per car in the fall of 2002. By December 31, 2002, the dealer had sold 10 of these cars for $27,000 each. The remaining 20 cars were sold in early 2003 at an average price of $28,000 each.
a. How is the U.S. GNP affected in 2002 and 2003 as a result of this activity, by how much?
b. How are the U.S. GDP and its components (C, I, G, Export, and Import) affected in 2002 and 2003, by how much?
Explain why economic profits are zero in the long run in a monopolistically competitive market. What are the characteristics of a public good?
Describe the roles of financial institutions in the global economy and discuss how the financial services industry is likely to change over next decade.
Many retailers offer warranties on the goods they sell, whether they be electronic products, house ware predicts or cars. What type of problems resulting from information asymmetries between buyers and sellers motivate retailers to offer warranties? ..
Evaluate the following statements using graphical analysis. Provide a brief narrative explanation of your graph to support your evaluation. Make sure the axes and curves in your graphs are properly labeled. a. "When demand for home heating oil incr..
All firms in a competitive market have the following total cost function TC = 0.5Q2+ 4Q + 120 The market demand and supply functions are given by Qmd = 1700 - 20P , Qms = -100 + 10P where Qmd and Qms are in 100 ..
An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline in a market with downward sloping demand and upward sloping supply would raise the equilibrium price. a exactly $1.00 per gallon.
A sum of £450,000 is invested at a monthly interest rate of 0.6%. What will the final sum be after 18 months? What is the corresponding AER?
Define the income and substitution effects of a wage change on hours of labor supply. Explain and show graphically the derivation of this individual's labor supply curve.
ohn and dave value national defense differently. johns demand for the public good is p 50 - .20q. daves demand for the
Prepare a research paper for your chosen company as it relates to the "Unit Milestones" listed below. It is not required that you submit weekly research to your instructor.
How would each of the following developments affect the U.S. monetary base, money multiplier, andmoney supply? Explain.a. The Federal Open Market Committee decides to purchase $40 billion of mortgage-backed securitiesevery month (like the thir..
the demand curve is given byqd 500 - 5px 0.5i 10py - 2pzwhereqd quantity demanded of good xpx price of good xi
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