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Assume the equilibrium GDP (Y) is 5,000. Consumption (C) is given by the equation C= 500 + 0.6(Y-T). Taxes (T) are equal to 1,000. Government spending is 600. In this case equilibrium investment is?
Explain the difference between implicit and explicit costs. Give two examples of when an explicit cost is different from an implicit cost. In your own words, explain the difference between accounting and economic profit. Give two examples of when the..
A engineering firm plans to buy new software to improve efficiency. The software has an initial cost of $15,000, and is expected to increase profit by $3,000 per year. Determine the payback period for the software including the effect of interest usi..
Explain how it is possible for one of two people in a two-good economy to have an absolute advantage in producing both goods, but trade can still benefit both people.
A friend wants your advice. His aunt recently left him $100,000 that he must invest in one or both of two different corporations. The current price per share of each is $100. If your friend buys 1000 shares of the first corporation, what will be the ..
Determine what are some of the philosophies that influenced Latin America? In what way did they impact the cultures of Latin America?
Consider our competitive market, describe by the supply and demand model. If there are no externalities, explain why economists describe the competitive equilibrium an efficient. Do these firms have an incentive to reduce their pollution? Modern econ..
The campaign is very successful, and the company increases its share of the compact-car market substantially. What is Ford likely to do?
What are the distinguishing characteristics of public goods? Give two examples of a public good. Why are public goods difficult for markets to allocate efficiently?
An advertising agency has developed Internet and television ads for a particular business. Each Internet ad costs $200 per run and each television ad costs $500 per run. The business does not want the sum of Internet and television ads to be run to e..
The "interest-only" mortgage typically converts later to a:
what actions would you take to test the hypothesis. Following your test illustrate what actions would you take if the hypothesis must be rejected given the outcome of the test.
A bank has asked you to create an accounting program that will allow their customers to enter and track information on deposits and withdrawals. This information should be sortable by date. Write a 1-2 page paper, indicating how you would structur..
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