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Northern Shelters manufactures homes, cabins, workshops, and garages. The prebuilt walls, floors, and roofs are assembled on-site. Each year, five new designs are added (and five with low profit margins are dropped). Rank the designs from best to worst. Note that home designs (H) have a life of 5 years; cabins (C), 10 years; workshops (W), 15 years; and garages (G), 20 years. Northern Shelters requires at least a 15% rate of return on all projects.
Why is the multiplier for contractionary fiscal policy smaller in an open? economy?
Mike finds a Coke machine in an abandoned part of town and is extremely thirsty. The Coke machine requires exact change - two quarters and a dime. No other combination of coins will make anything come out of the machine. Draw a graph that illustrates..
Illustrate what is the ability to pay principle in public Fiance also what are some of the problems implementing it.
Suppose that to finance its credit policy, the Fed pays an annual interest rate of 0.25% on bank reserves. During the course of the current year, banks hold $1.4 trillion in reserves. What is the total amount of interest the Fed pays banks during ..
1. contrast the ideas of nominal gdp also real gdp. explain why there is one more reliable than the other for comparing
What is the present worth of a $50,000 bond that has an interest of 20% per year payable quarterly? The bond matures in 5 years. The interest rate in the marketplace is 10% per year, compounded semiannually.
Now suppose world relative demand takes the following form. Demand for apples/demand for bananas = price of bananas/price of apples. Graph the relative demand curve along with the relative supply curve.
Consider a market with one large firm and many small firms. The supply curve of the small firms taken together is S(p) = 100 + p. The market demand curve for the product is D(p) = 200 - p. The cost function for the one large rm is c(y) = 25y. (a) Sup..
Explain the effects of rent control in the stock-flow model of the housing market. Can we determine the profit maximizing quantity and price in an oligopoly? What is the current economic issue about China? What are the important factors of economic g..
What is the profit-maximizing level of output and profit-maximizing price for a monopoly? Explain in terms of demand, marginal revenue, average total cost.
Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions. Category Value Compensation of employees $196.2 U.S. exports of goods and services 19.8 Consumption of fixed capital 11.8 Governme..
A new firm successfully enters a three-firm Cournot oligopoly without changing the demand and cost structures. The new price becomes:
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