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1. Define transfer payments and give an example. Describe why transfer payments are not included in GDP.
2. Determine which components of GDP (C,I,G,X,M) would be affected by the following:a. You buy a pizza.b. You buy a new house.c. Tennessee resurfaces Interstate 40.d. You buy a Lamborghini.e. You buy a new stove.
3. The federal government has recently enacted several large spending bills (i.e. "economic stimulus.") Use the Modern Keynesian aggregate supply and demand system to tell which curve(s) shift and in which direction. Explain how the price level will be affected by these expenditures in the short-run. Explain how GDP is affected in the long-run.
4. Conduct the same exercise as in #3 using the Classical model. Describe how the price level will be affected by these expenditures in the short-run. Explain how GDP is affected in the long-run.
5. Compare your results from #3 and #4. Are the results different? Describe.
6. Why would it be important for a policy maker to understand these two major theories of economics?
Explain what should the firm replace its old knitting machine, and if so, which new machine should it use.
Target costing is just new fashionable term for something which we have done all along.
Draw a set of indifference curves for Jones, and second set for Smith, with alcoholic drinks on vertical axis and non-alcoholic on the horizontal axis.
Use Excel program to estimate of the state's demand for KBC microbrews in Ohio. Print (past) the computer regression output and provide an economic interpretation of the regression results.
Assume the market for computer chips is dominated by two firms: Intel and AMD. Intel has discovered how to make superior chips and is considering whether or not to adopt the new technology.
Suppose which major function of profit is to allocate resources according to consumer preferences
Elcidate how slower inventory turnovers, slower receivables collections, or faster payments to suppliers would influence the numbers produced by a cash budget.
Academic response to Required Rate of return. Calculate the required rate of return.
Illustrate what policies would you implement to help the economy reach full employment.
Illustrate what should the government's role be with respect to regulating accounting firms in the wake of mismanagement and accounting irregularities.
A representative company with long-run total cost given by TC =20+20q+5q2 operates in a competitive industry where short-run market demand and supply curves are given by QD = 1,602 - 40P and QS = - 400 + 20P.
Illustrate what economic forces and mechanisms work to maintain trade equilibrium. How does the balance of trade impact business decisions.
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