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Question: The local bank offers to pay 5% interest on savings deposits. In a nearby town, the bank pays 1.25% per 3-month period (quarterly). A man who has $3000 to put in a savings account wonders whether the higher interest paid in the nearby town justifies driving there to make the deposit. Assuming he will leave all money in the account for 2 years, how much additional interest would he obtain from the out-of-town bank over the local bank?
A philosopher of science writes, "Suppose we toss a fair coin 10,000 times, the first 5000 tosses being done under a red light, and the last 5000 under a green light. The color of the light does not affect the coin. However, we would expect the st..
What is the marginal rate of technical substitution of labor for capital if MP(L) = (K1/2) * (L-1/2) and MP(K) =(K-1/2) * (L1/2). Give an economic interpretation for the marginal rate of technical substitutionof labor for capital.
How can culture be transmitted to employees? Discuss and provide examples for each. Considering an organization you know well, have any of these examples surfaced as more important than the others?
A lumber company uses labor (L) and capital (K) to produce joint products, hardwood (H) and plywood (P). These items can be produced by one of two processes: Process 1: 1 unit of L and 2 units of K to yield 2 units of H and 1 unit of P or Process 2..
We explained how a central bank has an important role in maintaining confidence: "High confidence" keeps velocity growth and the money multiplier from falling.
Discuss the differences between horizontal, vertical and conglomerate mergers and how those differ from a joint venture.
How does monopoly compare with pure competition in terms of price, output, and efficiency? Explain how monopoly causes an inefficient allocation of resources when the competitive firm does not, even when both seek to maximize profits.
When is a stratified sample an appropriate sampling technique? specific characteristics of the population are of no concern individuals in a population are not equal each member must have an equal chance of being selected you have a small population ..
Suppose a freeze in Florida destroys part of the Florida orange crop. a. Explain what happens to the price of oranges and the marginal product of orange pickers as a result of the freeze.
1. define scarcity and opportunity cost. how are these economic concepts related? what role do they play in the making
What is meant by "The more productive a resource is, the more it will be in demand." Can you provide an example?
Why doesn't the United States just give its crop surpluses to poor countries?
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