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Application 10 explains that even though no one directly and explicitly pays for good weather ("Here is $100 for the good weather"), you may pay for good weather indirectly, such as through housing prices. Identify three other things (besides good weather) that you believe people pay for indirectly.
Discuss, with the help of Krugman-Obstfeld-Melitz' AA- and DD-curves, the effects of a contractive fiscal policy (a decrease in government spending) on the interest rate, the nominal and real exchange rates, output and the price level.
Which innovations in particular marked the transformation into a global player? What are the most critical barriers for continuous high growth in the future for Vestas?
Hypothetically, imagine if US abolishes $100 bill and replace it with a different bill. What according to you will be the repercussion of such a change.
What part of the change in consumption is due to the income effect and what part is due to the substitution effect - Draw the highest indifference curve that she can attain in red ink, and label the point that she chooses as A.
Determine the number of souvenir coins that must be sold per year to justify the purchase of a $6000 stamping machine. Each coin will be sold for $5.00.
With the recent dramatic political and social events that have occurred in the world over the past several years, your management team is concerned about the impact of rising energy costs on your firm's overall operations, and they have asked you ..
Which model should the consulting firm buy? A consulting engineering firm is considering two models of SUVs for the company principals. A GM model will have a first cost of $26,000, an operating cost of $2000, and a salvage value of $12,000 after 3 y..
A special-purpose machine is to be depreciated as a linear function of uses (units-of-production method). It costs $35,000 and is expected to produce 150,000 units and then be sold for $5,000. Up to the end of the third year, it had produced 60,000 u..
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Imaginethat your Learning Team is a group of economic advisors working for the U.S. president. You have been tasked with evaluating the current state of the U.S. economy and making recommendations on how to improve it.
a. Firm A has sales of $100,000 in good years, $90,000 in average years, and $80,000 in bad years. Its variable operating costs are 60% of sales, and its fixed operating costs are $10,000 per year. It exists in a nation that has no corporate taxes, a..
When a perfectly competitive firm finds that its market price is below its minimum average variable cost, it will sella. any positive output the entrepreneur decides upon because all of it can be sold. b. nothing at all; the firm shuts down c. the ou..
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