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Consider the following issues of national income accounting.
(a) In the national income and product accounts, is a new automobile bought by a consumer treated as a consumption good or as an investment good? Describe and explain the treatment used.
(b) If the automobile were instead treated in the other way, how would national product be affected? Explain what would be the effect on net national product and gross national product.
(c) A recent change in the national income and product accounts is that the purchase of microcomputer software by a business is now treated as investment, rather than as the purchase of an intermediate good. How will this change affect net national product and gross national product? Contrast the effect in the short run and in the long run?
Find the "cost to own" as a function of the number of miles driven for a pair of vehicles from the table, based on the fuel price estimate from part a. Plot your results on an x-y graph. The point where the two lines cross is the break-even point.
Suppose the damages are $200,000 and each side sees its winning chance at 60 percent. What are the prospects for an out-of-court settlement?
In particular, what will be the likely effect of the LEGO Group's venture LEGO Universe on the organization of the LEGO Group in the future?
Is demand for these courses elastic or inelastic? What factors do you think are responsible for this degree of elasticity?
Why is understanding Real GDP necessary for measuring Economic Growth? Explain. Be sure to define your terms. Why not Nominal GDP? It seems more tangible to me. What say you?
HoneyBee Farms, a medium size manufacturer of honey, operates in market that fits competitive market definition relatively well.
The authors actually broke the data into seven different times of day, but for purposes of this example assume that the dependent variable is each participant's mean SSS score over the 30-day period. What is the appropriate analysis of these data?
Suppose that an industry cartel wishes to keep a new entrant out of an industry. Cartel members can conduct "predatory pricing", where the cartel lowers its price until the entrant leaves, after which it returns it price to the cartel's optimal (m..
What is the difference between rational expectations and adaptive expectorations?
A vacation home in Malibu is
Bill decides to start a 401(k) investment account beginning next year with an initial investment of $500. His plan is to make annual investments which increase by $100 each year. If bill earns 10% on his investment, his 401(k) account will be worth h..
in the 1990s five firms supplied amateur color film in the united states kodak fuji konica agfa and 3m. from a
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