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Suppose you have $2000 in currency in a shoebox in your closet. One day, you decide to deposit the money in a checking account. How will this action affect the M1 and M2 definitions of the money supply?
Additionally, calculate the expected value of her income for Job X and Job Y in situation c) above.How do you reconcile these figures with her actual decision?
Suppose Dana quits her job as a lawyer, where she made $6500 per month, to open an ice cream shop. Suppose that Dana has revenue of $20,000 per month. Her monthly explicit costs are shown below. Is Dana earning an accounting profit? Is she earning an..
Your firm makes smart phone cases. The firm is a monopoly that faces the following demand function: P = 360 – 2Q. What are the total revenue and the marginal revenue functions for your firm?
Explain how does global economic competition impact price elasticity in domestic market and decisions related to strategy a firm uses to compete.
A major employer in a small town announces upcoming major layoffs of employees. What should we expect to happen to the consumption functions of the affected employees.
It seems that the information density and richness of the Internet and Web would tend to make markets more perfect. What are some continuing barriers to market perfection?
During recession, what happen to the interest rate, output and money supply? When looking at monopolies, they are very important in providing a service. How do you think firms can estimate how to compete in this market? How and why has the demand for..
In an advertisement for a professional employment organization it was stated: “Outsourcing can be a cost-effective alternative to the expense and administrative burden of a traditional employer-employee relationship.” Evaluate the costs and benefits ..
Demonstrate using supply and demand graphs. Draw each graph, label each graph, discuss why the change may occur, and how the change will impact interest rates
Figure 1 above shows a consumer's budget constraint for buying apples and oranges, as well as the indifference curve passing through the utility-maximizing bundle A.
What kind of monetary and fiscal policies could be introduced to reduce unemployment?
Explain the significance and implications of various economic theories pertaining to profit, consumer choice, demand and supply, forecasting and optimization.
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