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Goods and services not purchased in markets, such as food produced and consumed at home, are usually not included in GDP. How might this impact our measure of economic well being? Should we try and include these types of good when measuring GDP? What about activities in the ‘informal' economy?
Suppose a monopolist can purchase Labor at a price w = 36 and can purchase Capital at a price r = 25. The monopolist's production function is given by Q = L1/2K1/2. The demand facing the monopolist is given by P = 180 - 3Q. a) What is the Monopol..
Rosalie, a wealthy widow, invited an acquaintance, Jonathan, to her home for dinner. Jonathan accepted the offer and, eager to please her, spent lavishly in preparing for the evening. His purchases included a new blazer, new shoes
What is depreciation of a currency? Appreciation of a currency? What interest rate is the Fed trying to control (target) with open market transactions? How are long term interest rates determined? What is the long run effect of monetary policy? Why d..
Given that milk and cookies are complements, suppose the price of flour (an ingredient in cookies) rises. What happens in the market for milk Choose one answer. a. The equilibrium price and quantity rise. b. The equilibrium price rises and the equil..
The cost for loss of heat from the pipe per meter is $4.8/X1/2 per year. Here, X represents the thickness of insulation in meters, and X is a continuous design variable.
If Appe were to build a balanced, scorecard, what two objectives do you think should be included in the learning and growth perspective?
suppose the market interest rate is 10 percent. Would you be willing to lend $10,000 if you were guaranteed to receive $1,000 at the end of each of the next 12 years plus a $5,000 payment 15 years from now? Why or Why not?
What is the component cost of the equity raised by selling new common stock? What is the maximum amount of new capital that can be raised at the lowest component cost of equity?
The possible merger currently faces some threats and that the industry decides on self-expansion as an alternative strategy, describe the additional complexities that would arise under this new scenario of expansion via capital projects.
A plastic surgeon thinks she can make more revenue by lowering the price of cosmetic surgery.If cosmetic surgery is an elastic service, is she correct in her assumption.
describes the market structures of oligopoly and monopoly in terms of number of producers, types of products produced, barriers to entry, and whether profit can be made in the short or long run.note whether oligopolies and monopolies are bad or..
At which rate will there be an excess supply of money? What does this mean? Describe in detail the adjustment process in the money market when there is an excess demand for money.
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