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How would you go about estimating the different probabilities of three alternatives occurring if you have little empirical data on which to base your estimates? Using either expected value rule, mean-variance analysis, or coefficient of variation analysis? or all?
Analyze how inflation could occur in a society that relies exclusively on barter versus money. Speculate what form inflation would take and how you would recognize it. Provide support for your response.
Time for a lump sum to double If you deposit money today in an account that pays 5.5% annual interest, how long will it take to double your money?
The makers of Tylenol pain reliever do a lot of advertising and have loyal customers. In contrast, the makers of generic acetaminophen do no advertising, and their customers shop only for the lowest price. Assume that the marginal costs of Tylenol
Explain how the quantity theory of money reaches the conclusion that the normal effect of an increase in the money stock is a proportional increase in the price level.
Classify the following Wall Street Journal articles as involving macroeconomic or microeconomic issues based on their titles:
Suppose a consumer's level of satisfaction is given by AB^2 and he/she has a total of $10 to spend on goods A and B. If the price of A is $1 and the price of B is $2, and assuming you can only purchase whole units (not fractional) of A and B, how man..
Assume that the demand for chalk is p = 8 -0.1, where P is the market price and Q is the total market output measured in thousands of boxes of chalk. Suppose that there are three firms in this industry, each of which has a constant variable cost of $..
A firm is considering a capital investment. The risk premium is 0.04, and it is considered to be constant through time. Riskless investments may now be purchased to yield 0.06 (6%). If the project’s beta (?) is 1.5, what is the expected return for th..
What will be the future worth of a series of 15 annual $1500 payments if the nominal annual interest rate is 7% and the interest is compounded quarterly?
Draw a supply and demand curve, label X & Y axis and show equilibrium. Show a shift in demand and supply, and why it has occurred (non-price determinants). Describe all changes. Show in two or more graphs and use 2 examples for each - supply and dema..
Many students are surprised to learn that employees may be fired for any reason not expressly prohibited by the law. As we have seen, the law requires employers to accommodate a fairly wide range of employee behaviors and conditions. However, there a..
Discuss political economy of euro. What are likely economic effects of euro. What are its likely political effects. How is euro supposed to solve EU's political problems. Explain
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