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A labor contract provides for a first-year wage of $15.00 per hour and specified that the real wage will rise by 5 percent in the second year of the contract and by 7.5 percent in the third year. The CPI is 1.00 in the first year, 1.02 in the second year and 1.05 in the third year. What are the dollar wages that must be laid in the second and third years of the contract?
Suppose that Parvez, a pharmacology student is spending $120 budget on paperback novels and used CD's. For novels, MU/P = 5 ; for CD's, MU/P = 4. Is he maximizing his utility? Why yes, why not? Explain. If not should he consume more novels and fewer ..
If your analysis period (study period) is just three years, what should be the salvage value of project A2 at the end of year 3 to make the two alternatives economically indifferent?
Suppose the going market rate of interest on high-quality corporate bonds is 12 percent. FORTRAN Corporation is considering an investment project which will last 10 years and requires an initial cash outlay of $1.5 million
Regional economic integration can be seen as an attempt to achieve additional gains from the free flow of trade and investment between countries beyond those attainable under international agreements, such as the WTO. What are the pros and cons of th..
Some lenders charge an up-front fee on a loan, which is subtracted from what the borrower receives. This is typically described as "points" (where one point equals 1% of the loan amount). The federal government requires that this be accounted for in ..
Answer the following questions about Keynesian vs. Classical view of economics. Marginal propensity to consume (MPC) is the slope of the Keynesian AEcurve. Using an equation and words, describe the relationship between MPCand the Keynesian spending m..
A Spanish can either produce 3 liters of win or 1 kilos of cheese. A Portuguese worker can either produce 4 litres of win or 12 kilos of cheese 1) Which countries have absolute advantages in which goods? Explain 2) Which countries have comparative ad..
The purchase of a used pick up for $14,000 is being considered. Records for other vehicles show that costs for oil, tires, and repairs about equal the cost for fuel. Fuel costs are $2500 per year if the truck is driven 10,000 miles. Use a weighted es..
You have just purchased a house for $400,000, paid $24,000 for legal fees and $17,000 for renovations. The market price of the house does not change. If the sales tax on a house were 3% (to be paid by you if you sell the house), what is the sunk cost..
Illustrate what occurred to employment during the rest of 2008. Illustrate what are some of the alternatives to a tax cut that might have been utilized.
An investment currently costs $30,000 if the current inflation rate is 3% and the effective annual return on investment is 8%. Approximately how long will it take the future value to reach $45,000?
Discuss whether horizontal or vertical boundaries have been changed, and whether they were extended or shrunk. Following the September 11, 2001 attacks, the U.S. government established the Department of Homeland Security.
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