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Which of the following are positive economic statements and which are normative? Explain. a) Higher gasoline prices cause the quantity of gasoline that consumers buy to decrease. b) Everyone should enjoy open access to health care. c) A comparison of costs and benefits should not be used to assess environmental regulations. d) Higher taxes on alcohol result in less drinking and driving.
Which of the following is NOT a component of GDP?
Miller and Coors who together produce 85% of all beer consumed in the US, each spend well over $250 million a year on television advertising campaigns, promoting their beer brands.
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.
Explain the relationship between the price elasticity of demand and total revenue. What are the impacts of various forms of elasticities (elastic, inelastic, unit elastic, etc.) on business decisions and strategies to maximize profit? Explain using e..
Suppose that the K/L ratio is higher in Germany than in Britain. What would you expect to happen to wages in Germany as trade took place between the two countries? Why?
A medical device company has a monopoly on a certain class of cardiac implants. Demand for the implants is given by P=28000-5Q and marginal revenue is given by MR=28000-10Q. Give the profit after calculating the profit-maximizing price and quantity. ..
Mr. Smith has saved $1,800 each year for 20 years. A year after the saving period ended, Mr. Smith withdrew $7,500 each year for a period of 5 years. In the sixth and seventh years, he only withdrew $5,000 per year. In the eighth year, he decided to ..
An increase in the price of product X causes a decrease in the quantity demanded for product X. One basic explanation for this is:
q.anthony figueroa is a cpa who works for an accounting consulting firm. his annual salary income is 70000. anthony is
Le Crueset is a French restaurant that recently increased the average price of its meals by 4%. As a result, the number of customers dropped by 3%. Based on this information, what is the price elasticity of demand for meals at Le Crueset? How will th..
Assume which the mix of fiscal and monetary policies is changed such which the money supply is increased by 100 while the government.
Compute equilbribrium outcome for a firm that has ten workers, one of who is the owner who manages the firm. The firm's net income(net of the cost of materials, etc) is always five times the total amount of effort contributed.
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