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Amy and John each hold a set of labor preferences and are allocated work accordingly. How can income taxation rules possibly result in Pareto improvements to their allocations?
Signs of investor uneasiness in continuing to purchase treasury securities issued by heavily indebted sovereign states such as Greece and Spain have triggered a debate in the past about raising the debt ceiling here. Given the current situation of th..
A reduction in the price of a “normal good” will result in
A company is considering replacing a machine that was bought six years ago for $50,000. The machine, however, can be repaired and its life extended by five more years. The seller of the new machine has offered a trade-in allowance of $15,000 for the ..
Congress is proposing a bill that will roll back gasoline prices to four dollars a gallon. Analyze the consequences of such a bill and whether or not you would personally favor it. Consider all the costs involved in your analysis.
The law of demand states the basic price/quantity relationship of consumption incentives. Ow does the concept of "price elasticity" add to that knowledge? Using the price elastic concept develop a real world testing example
Explain how does the capital/financial account differ from the current account. Give examples of what is included in each.
Sketch a supply-demand graph for sunflower. Identify the price and quantity sold on the axes. Now draw a second demand curve to the left of the first. What happens to the price? What happens to the quantity sold?
Illustrate what is the fed funds rate in the banking system. Explain how the Fed manipulates this rate in order to achieve macroeconomic objectives.
1. Should he take that opportunity? 2. For a price of $25 thousand dollars, ING offers Jay to insure his investment, which means that if Greece does default, ING will repay him his initial investment, which is $50 thousand. Should he purchase insu..
How many units of x1 and x2 will the firm use to produce y units of the output? What is the cost of poducing y units of the output for this firm?
Consumption is $6 trillion, investment is $2 trillion and government purchases are $2.5 trillion. The country exports $1 trillion and imports $1.5 trillion. Find net exports and solve for the level of aggregate demand.
Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost..
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