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Compensating differentials explain in part:
A. how unions derive their bargaining power;
B why some people choose to aquire more human capital thatn others;
C. how the income and substitution effects interact;
D. why there is income inequality
Your company is interested in analyzing the behavior of interest rates and the models used to predict interest rates in the future. As an initial project in this area, If the market-clearing price (market equilibrium) of this bond has a return of 20%..
Home Interiors has net income of $248,000. The firm has decided to pay $160,000 of that income out to the shareholders. What is the firm's retention ratio? Art Supplies has a net income of $138,600. The firm has $1.25 million in assets and $500,000 i..
Steve owns a bike store. His total costs are $1.2 million per year, his variable costs are $750,000, and his fixed costs are $450,000 per year. Last year, Steve sold 1,200 bikes. If Steve sells 1,250 bikes this year (50 more than last year) and his a..
Determine the new equilibrium price and quantity and how much tax revenue does the government earn with $6 tax.
Consider an offshoring model in which Home’s high-skilled labor has a higher relative wage than Foreign’s high-skilled labor and in which the costs of capital and trade are uniform across production activities. Will Home’s offshored production activi..
An automobile manufacturer is converting an assembly line from standard vehicles to hybrid vehicle production. Conversion will cost $100 million. Production capacity will be 4000 vehicles in the first year and will increase by 1000 vehicles per year ..
What type of inflation occurs if workers ask for higher wages and firms must raise product price in order to pay their workers?
Grandpa would like to deposit some money now for his grandson to have available to beginning withdrawing $25,000 per year for four years, starting 5 year from now. If the money earns 6% interest per year, the amount that Grandpa must deposit is close..
Suppose the price level and value of the U.S. dollar in year one are 1 and $1, respectively. If the price level rises to 1.20 in year two, what is the new value of the dollar?
explain how lower coffee bean output in brazil, vietnam, columbia and central america are affecting this market. explain what has been happenning in this market.
By what percentage do the total assets decline by bank. By what percentage does the bank's capital decline. Illustrate which change is larger.
What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution
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