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A noted economist recently stated, “This last recession, that ended in November 2010, had lasted 32 months, which is almost 4 times longer than the average recession (which is 9 months), and had the highest unemployment rate (10.6%) we have seen in the last 25-30 years.“ In terms of time and unemployment, this recession is more severe.
a. Is this positive or normative? Explain your answer. b. Is this macro or micro? Explain your answer.
Alternative I require an initial investment of $20,000 and will yield a rate of 15% per year. Alternative C which requires a $30,000 investment will yield 20% per year. Which of the following statements is true about the rate of return on the $10,000..
Identify economic forecasts for real GDP, the unemployment rate, the inflation rate, and a key interest rate. What do your forecasts imply about the relative strength of the economy over the next two years.
Suppose capital is fixed at 16 units. If firm can sell its output at a price of $100 per unit and can hire labour at $25 per unit, Explain how many units of labour should firm hire in order to maximize profits.
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -2. The firm’s marginal cost is constant at $15 per unit. Express the firm’s marginal revenue as a function of its price. Determine the p..
What price should a firm charge for a package of two pens given a marginal cost of t' 2 and an inverse demand function P = 6-2Q by the representative consumer?
Wilson is offered a job in Kansas City that pays $50,000 and a job in Dallas that pays $60,000. Which pair of CPIs would ensure that the two salaries have the same purchasing power?
Assume that the dairy industry is initially in a perfectly competitive equilibrium. Assume that, in the long run, the technology is such that average cost is constant at all levels of output. Suppose that producers agree to form an association and be..
Air China is regularly selling out the cargo belly hold capacity on its scheduled Beijing to Los Angeles passenger flights. Air China is considering leasing a Boeing 747-400 freighter (originally a passenger aircraft, but converted to all- cargo) to ..
Suppose that a manufacturer is a monopolist in selling some product to a number of competitive retailers at wholesale price w. The manufacturer has marginal cost of $10 per unit. Each retailer pays w to the manufacturer and charges p for each unit it..
Over the last seven chapters you have hopefully been reading each chapter’s “running case”- Wal-Mart. Given that this chapter concerns corporate-level strategy, it is appropriate that we tie together the elements of the running case to consider Wal-M..
The nation with the lowest opportunity cost of producing a good has a?
Suppose a politician promises a program that will give Amanda and Britney 70 units of utility for each.
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