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Janice decides to quit her $20,000 a year job and open a small store selling high fashion clothes. To start her store, she takes $100,000 out of her savings account. She had inherited this money from her parents. During the first year, her expenses are as follows:
Rent for the Store $15,000
Four Hired Workers $80,000
Clothes $100,000
Accounting Firm $3,000
Electricity $2,000
Insurance $5,000
Do you really want a minimum wage?: Stakes are High for Workers, Businesses as Illinois Considers Minimum Wage Hike
If a two linear demand curve run through a common point than at any given quantity the curve that is flatter is more elastic? Whether buyers or sellers bear the majority of the tax burden depends on who initially imposed the tax?
Two folks are fishing next to each other. Let x and y denote the amount of fish (in pounds) caught by players 1 and 2, respectively. Player 1’s payoff from catching fish isπ_1 (x,y)=2x-x^2/4-xy/10 π_1 (x,y)=2x-x^2/4-xy/10 . Similarly, the payoff of p..
The Black rhinoceros is extremely endangered. Its horn is considered a powerful aphrodisiac in many Asian countries, and a single horn fetches many thousands.
Suppose the Fed purchases $1,000 worth of Treasury bonds. Suppose also that the required reserve ratio is 10%. How much money will be created in the banking system?
a. Suppose that money supply (M1) is $200. What is the money multiplier? What is the currency-deposit ratio? What is the reserve-deposit ratio?
According to our textbook when one additional unit is produced, two factors directly impact the change in average total costs, the Spreading effect and the Diminishing Returns effect.
There are a number of measures of aggregate economic activity, such as GDP, GNP, national income, personal income, and disposable personal income. Each of these measures can be a good indicator depending on the issue under consideration.
In a study of vehicle ownership, it has been found that 31% of U.S. households do not own a vehicle, with 48% owning 1 vehicle, and the remaining owning 2 or more vehicles. When testing (at the 10% level of significance) whether the vehicle-ownership..
Suppose that capital's and labor's shares at .3 and .7. What would the effect be of increasing the pool of labor by 10 percent? If the increasing labor is due to population growth, will the resulting increasing have an effect on people’s welfare?
Suppose that there are only two fishermen, Zach and Jacob, who fish along a certain coast. They would each benefit if a lighthouse were built along the coast where they fish. The marginal cost of building each additional lighthouse is $150. The margi..
Explain the long-run effect of an increase in nominal money supply on the amount of real money balances available in the economy.
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