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The President of the United States receives an annual salary of $400,000. Aaron Judge, outfielder for the New York Yankees and the American League Rookie of the Year in 2017, will receive an annual salary of $622,300 million in 2018. Based on marginal productivity theory and assuming these markets are competitive, this salary differential indicates that: a. Aaron Judge contributes much more to society than does the President of the United States. b. the President of the United States contributes much more to society than does Aaron Judge. c. Aaron Judge and the President of the United States make equal contributions to society. d. the salary differential between Aaron Judge and the President of the United States indicates that their marginal productivities cannot be compared.
How much cash and markatable securities does Gray Computer Co. have if the firm has a current ratio of 2.5, a quick ratio of 1.2, and current liabilities of $12,000. Gray's credit sales are $98,000 and its average collection period is 40 days? (Assum..
The following graph shows the market for loanable funds. For each of the given scenarios, adjust the appropriate curve on the graph to help you complete the questions that follow. This change in the tax treatment of saving causes the equilibrium inte..
Explain how the Fed's use of its three tools of monetary policy affect supply and demand in the market for reserves and the equilibrium federal funds interest rate.
You are laid off from your job and decide to use these funds to pay off your mortgage.
Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman inde..
Aerotron Electronics is considering purchasing a water filtration system to assist in circuit board manufacturing. The system costs $40,000. It has an expected life of 7 years, at which time its salvage value will be $7,500. Operating and maintenance..
The discount rate is the interest rate on loans that the Federal Reserve makes to banks. Banks occasionally borrow from the Federal Reserve when they find themselves short on reserves. A lower discount rate_____ banks' incentives to borrow reserves f..
The Australian government is concerned about inter-generational equity problems. Key problems arise from a larger number of older retired people being supported by a smaller workforce of young people, and from ever increasing budget deficits to be pa..
At the end of each year, he will put accumulated savings into a money market fund that is expected to pay 8% interest at the end of each year. Calculate the amount of money he expects to have after ten years.
Which of the following is true about price matching strategies? consumers are often mislead because they believe they are charged the same price as competing firms. if one consumer finds a lower price at Firm A,then Firm B will match its price to Fir..
Consequently, the firms’ top accountants and financial manager argue that the firm should raise the price of the product 10 percent above its original target to help recoup some of these costs. Does such a strategy make sense? Explain carefully.
Do you think healthcare spending contributes to the nation's GDP substantially? Explain. Do you think Real GDP reflects adequately our standard of living? why? why not? Share with us how your family and your hospital contribute to the nation's GDP.
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