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What is likely to be the effect of such increase in government expenditure on the budget balance for the government and on national debt if there are no other policy changes?
A project has a first cost of $10,000, net annual benefits of $2,000 and a salvage value of $3,000 at the end of a ten year useful life. What is the future worth of the project if MARR = 10%?
Indicate what the short-run price elasticity of demand for tires is 0.9. If a tire store raise the price of a tire from $50 to $60, by the price elasticity of demand.
What is the present value of $3000 per year for 8 years discounted back to the present at 10 percent? What is the present value of perpetual stream of cash flows that pays $50,000 at the end of year one and then grows at a rate of 4% per year indefin..
GDP and the Multiplier Application. Most estimates indicate that the marginal propensity to consume in China is approximately 0.50. If we ignore a rise in the price level generated by a boost in aggregate demand that results from an increase in real ..
True/False questions: The Durbin-Watson (DW) statistic is used to detect first order-serial correlation. Positive lag 1 residual autocorrelation is associated with DW values greater than 2. Autocorrelation exists when successive observations over tim..
Compare and contrast the merits of GNI, Net National Product, and Your Better Life Index as indicators of economic performance in Brazil, Russia, China, and India.
In what ways does the concept of the prisoner's dilemma contribute to our understanding of environmental problems Regarding global warming, deforestation, and ocean dumping, what are the sources of the problems (political, economic, social) Who are m..
Assume that the interest rate is 10%. Explain whether you would prefer to receive (a) $ 75 one year from now, (b) $ 85 two years from now, or (c) $ 90 three years from now? Would your answer change if the interest rate is 20%? Show how you arrive at ..
Define the five types of possible “net” or “overall” effects of the country’s growth on the importance of the trade sector and indicate which types would, other things equal, lead to a deterioration of the growing country’s terms of trade (assuming t..
Discuss a scenario where either the supply or price of a good or service is intentionally limited by the government.
q. assume that capital goods are on the vertical axis of a production possibilities graph and that consumer goods are
Suppose in Belgium the opportunity cost of producing a trombone is 8 clarinets. In Denmark the opportunity cost of producing a trombone is 6 clarinets. Which country has a comparative advantage in the production of trombones?
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