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1. Problems and Applications Q1
Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply.
A. Consumption
B. Investment
C. Government Purchases
D. Net Exports
You pay a domestic plumber for fixing a leak in your bathroom.
New York hires workers to plow snow after a snowstorm.
Uncle John orders 10 new computers for his finance business.
Uncle Paul pays a domestic contractor for renovating his home.
You buy a new Toshiba computer
Ford manufactures a Focus and adds it to its inventory.
Uncle John receives a check from the federal government for unemployment insurance benefit.
Dell sells a desktop computer from its inventory to the Johnson family.
Approximately 14 million Americans are addicted to drugs and alcohol. The federal government estimates that these addicts cost the U.S. economy $300 billion in medical expenses and lost productivity. Despite the enormous potential market, many biotec..
Graph the effective interest rate as the time to sell the car and pay off the loan varies from 1 to 5 years.
Briefly describe the barter system and its potential to be inefficient. What is money? How did money alleviate some of the aforementioned inefficiencies and assist in the development of markets in the acient world?
Suppose that Michelle buys a cappuccino from Paul\'s Cafe and Bakery for $6.25. Michelle was willing to pay up to $8.75 for the cappuccino and Paul\'s Cafe and Bakery was willing to accept $2.25 for the cappuccino. Producer surplus is the difference ..
Big Dom's Pawn Shop charges an interest rate of 27.5 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers.
An Inventory Management System in the food industry.
Explain why there is an oversupply of two of the following specialties.
Seitz and Hite outline a 'market approach', a 'state approach', and a 'civil society approach' to the alleviation of poverty.
Suppose that the profit a Honda dealership makes on selling an Accord is random and is given by the following probability distribution: 36% of the time the profit is 800, 26% of the time the profit is 1100; 18% of the time the profit is 1500; and oth..
If the price elasticity of demand for apples is 1.3, then a 15% decrease in quantity demanded is caused by a: 16.67% decrease in the prices of apples. 16.67% increase in the price of apples. 11.54% increase in the price of apples.
When entrepreneurs are investing their own money, how do they decide which projects they should undertake? When political decision-makers allocate the funds of others (taxpayers), how do they decide which projects to support? Explain.
Discusses three different types of returns. Identify the item in the list below that is NOT one of those three types of returns.
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