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A low-carbon-steel machine part, operating in a corrosive atmosphere, lasts 6 years, and costs $350 installed. If the part is treated for corrosion resistance, it will cost $500 installed. How long must the treated part last to be the preferred alternative, assuming 10% interest?
What do economists believe about the bias in the CPI as a measure of the cost of living?
An article in Business Week warned of the dangers of deflation as the collapse of numerous Asian economies was creating worries that Asia might try to “export its way out of trouble” by oversupplying everything from automobiles to semiconductors. E
A country has only two inputs K and L and produces two goods X & Y. It is endowed with 30 units of L and 15 units of K. Industry X is endowed with 25 units of L and 5 units of K and industry Y has the rest of L and K. This is an inefficient allocatio..
A restaurant sells an average of 120 dinners a night at a price of $8. The restaurant manager believes that the elasticity of demand at this price is equal to -.8. Use this information to calculate a linear demand curve for the restaurant.
Consider a firm using labor and capital as its only inputs. The price of capital is $40 where the price of labor (wage) is $60. Using 500 units of labor and 500 units of capital the firm is producing 1200 units of output. At this mix of input the fir..
Consider the open economy model. Suppose that U.S. investors decide to invest more in Canada. What happens to the real interest rate, the real exchange rate, the net capital ouflow, and the net exports in Canada and in the U.S.?
Contractionary fiscal policy could consist of
Industry X is characterized by perfect competition, so every firm in the industry is earning zero economic profit. If the product price falls.
If the annual rate of discount is 3 percent, what is present value of the bond?
Due to the guarantee, the firm can borrow $50 million for five years at 8 percent interest rate per year instead of 10 percent per year.
If a good has an income elasticity of demand equal to 2.7, how will the quantity demanded change when consumer income rises by 4 percent?
Evaluate the article using Economic concepts - Demand and supply of certain resources in Australia - Costs of production in manufacturing industry in Australia
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