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Question 1: Your HR Manager comes to you about an employee whose performance reviews have been declining recently, and asks your advice about whether to keep the employee or let him go. To provide some balance, the manager mentions that the company has spent a considerable amount of time and effort in training this employee on company-specific procedures and that, in the manager's words, "it would be a shame to let that money go to waste." How would you respond?
Suppose the marginal social cost of television sets is $100. This is constant and equal to the average cost of television sets. Calculate the losses in well-being each year that would result from a law limiting sales of television sets to 100,000 per..
Now assume a 7% real discount rate. What would the present discounted value of the project be? Should the project still be approved under this discount rate?
Explain the difference between the demand curve faced by a purely competitive firm and faced by a monopolistically competitive firm. How does this impact quantity of the firm produces and the price charged? specifically, how do economists define effi..
Refer to the data in the above scenario. What is the unemployment rate in the United States for the given year?
In the absence of taxes, Carlos would prefer to purchase a large fishing boat with a 75 hp motor. The government has recently decided to place a tax on boats with 75 hp motors or higher. Carlos is worse off, and his loss of welfare is part of the dea..
Learning Objective: In terms of macroeconomics; Be comfortable with what shifts the supply and demand curve, and how shifts in either supply or demand or both supply and demand change equilibrium quantity and equilibrium price. What would happen to t..
In a perfectly competitive market, demand for hairbrushes goes down. How does the market and a typical firm respond in the short and long run? Explain and draw the market and then the typical firm (two drawings, one for market, one for firm)
Assuming that the Fed judges inflation to be the most significant problem in the economy and that it wishes to employ all of its policy instruments except interest on reserves, explain how the Fed should implement its three policy tools to contain in..
Suppose that you have just purchased the security, and suddenly the market interest rate falls to 5%. What is the security worth?
The country of Dobermania has 20 units of labor and 3 units of land, while Malta has 80 units of labor and 7 units of land. Is Dobermania labor abundant? Is Dobermania land-abundant? If wheat is land-intensive and cloth is labor-intensive, what is th..
Is SPC employing labour and domes in an optimal ratio, assuming that substitution of resources is possible. Elucidate. Conclude marginal income products for exterminators and for domes/pumps employed by SPC.
NOTE: It is important that you follow this instruction to the letter. The purpose of the task is to know if you can define each concept by a clear and precise explanation. Imagine that you are going to explain each term to someone who knows nothin..
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