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1. Identify the four basic inputs to an economic system.
2. What is an entrepreneur?
3. What is an alternative term for private enterprise system?
4. What is the most basic freedom under the private enterprise system?
5. What feature or features do you think Google has identified as its basis for competitive differentiation?
Tight Money Policy is implemented by. Jack earns 60K and pays 3K in taxes; Peter earns 100K and pays 5K in taxes; then, the tax system must be: Professors are not obligated to pay taxes on markers provided to them by the college based on the followin..
Indicate whether each of the following is counted in this year’s GDP: a. you bought a new Wii at GameStop last year and resold it on eBay this year. b. You purchase an “Investing for Dummies” book at Barnes and Noble. c. You purchase a historic home ..
Priyesh’s preferences for goods x and y is given by the utility function U = x2/3y1/3. His income is $192 and the price of good y is always $1. Suppose the price of x starts at $8 and then decreases to $4. The substitution effect results in Priyesh b..
If in the closed private economy the aggregate expenditure equilibrium is 470 billion. If exports of 12 billion and imports of 12 billion are now added as well as an additional 70 billion in spending by the government and given a marginal propensity ..
Consider a firm for which production depends on two normal inputs, labor and capital, that are not perfect complements. Initially the firm faces market prices of w = 10 and r = 8, for labor and capital. These prices then shift to w=7 and r=7. Can we ..
A portfolio consists of two assets A and B. Their respective mean returns are E(RA) = 15% and E(RB) = 10%. Their variances are σ 2 A = 81 and σ 2 B = 49. Sixty per cent of the portfolio consist of asset A. (a) Assuming Cov(RA, RB) = −50, calculate th..
Your savings account was earning 3% interest. What are explicit and implicit costs of your decision. What is total opportunity cost this year of starting shop.
The mall of the future will most likely be less about purchasing products than about exploring them in a physical setting. This means that retail environments will have to become places to build brand images, rather than just places to sell products...
Ernest's income elasticity of demand for natural gas is 0.4. His price elasticity of demand for natural gas is -0.3, and he spends 10% of his income on natural gas. What is his substitution price elasticity?
A country is described by the Solow growth model. It has a population growth rate of 5 percent and a rate of technological progress of 3 percent. It is currently at the steady state. What is the country is growth rate for output and output per worker..
Consider this statement. “It is estimated that leaky pipes and dripping faucets are the source of hundreds of thousands of dollars of lost water each year. Business firms could reduce waste by inspecting more pipes thoroughly and repairing water leak..
Illustrate what effect will each of the following events have on the current account balance and the exchange rate if the exchange rate is fixed.
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