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Identify the following interest rate statements as either nominal or effective: 13% per year compounded monthly; 2.5% per quarter compounded quarterly; effective 2% per month compounded weekly; nominal 1.5% per month compounded daily; and 12% per year compounded semi-annually; 4% per year 6% per year compounded annually 1% per month compounded monthly effective 1.5% per month compounded weekly 2 % per month compounded continuously.
Out of the people who wear seat belts, northeast has 148. Out of the people who don't wear seat belts, northeast has 52. A total of 858 wear seatbelts in the United States. Illustrate what is the probability of seat belt usage by region of the cou..
What value of price elasticity of demand for electricity is assumed by people who draw the vertical demand curve? What evidence from the new York experiment is consistent with this hypothesis? What evidence is inconsistent?
Compare the automotive manufacturing industry today to the automotive manufacturing industry of the 1950's. Applying the economics of price and output, what is the difference between the industry of today and that of the 1950's. What type of mark..
What are the determinants of demand? What happens to the demand curve when any of these determinants change? What is the difference between change in demand and change in quantity demanded?
In order to show that perfectly competitive markets are efficient, economists assume that such markets are characterized by “perfect information.” How can imperfect information create inefficiency in what would otherwise be a competitive market?
Define the terms “globalization,” “comparative advantage,” and “outsourcing.” Discuss how globalization and the economic concept of comparative advantage relate to the practice of outsourcing.
In the United States, corn is often used as an ingredient in animal feed for livestock. Why does an increase in the use of corn to make ethanol, an additive that is used in gasoline, raise the price of meat? Use supply and demand curves for the corn ..
The income elasticities of demand for movies, dental services, and cloting have been estimated to be +3.4, +1, and +.5, respectively. Interpret these coefficients. What does it mean if an income-elasticity coefficient is negative?
Explain why cooperative approaches may stand up to legal review more easily in unionized plants than in non-unionized environments.
On Jan. 1, 2000, you purchased a bond that will pay $1,000 on Dec. 31 of each year from 2000 until 2019. It is now Jan. 1, 2015, and you decide that you would like to sell the bond. Assuming that the prevailing annual interest rate on that day for fi..
If the government imposes a quantity tax on the consumption of a good, it means that the consumer has to pay for each unit of the good its price plus the tax. For example, if the price of a chocolate bar is $5 and the government imposes a tax of 20 c..
Use some economic science, empirical data and economic history to better help Sebastian understand the veracity of this Facebook message.
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