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Q1. Explain how one of the components of the GDP would help you to predict the amount of inventory to keep in stock if you were the owner of a retail store and were placing a merchandise order for the next few months.
Q2. The fact that a percentage of the interest income paid by one corporation is excluded from taxable income has encouraged firms to use more debt financing relative to equity financing.
Q3. Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%.
Suppose that the tax of $28 is levied on each item sold by a monopolist, and as a result, it decides to raise its price by exactly $28. Why might this decision be against its own best interests?
Draft a research proposal to identify the problem also suggests a methodology for recommending a solution.
What are your monthly payments during years 5, 6, and 7? b. How much interest is in the sixtieth month's payment? How much principal?
the loan results in a new checkable bank deposit in a different bank equal to the amount of the loan, explain by how much could the total money supply in the economy expand in response to Tracy"s initial cash deposit of $500.
Illustrate what factors might explain why the $A went so low when the Global financial crisis hit the world economy in late 2008?
Based on your own experiences, extend the list of analogies between the human body and the economy as outlined in this chapter. Then, determine which variables in your list are stocks and which are flows.
State and elucidate principle of diminishing marginal utility in relation to consumer demand. Illustrate what is production function and how is it relevant to a production manager.
How would this change the consumer and producer surplus? Suppose a price floor of $16 was imposed. How would this change the consumer and producer surplus?
Explain the concepts of scarcity also choice also elucidate how they function in economic system.
Elucidate why does the government create monopoly power via its patent system, when elsewhere it spends millions trying to prevent the emergence of or regulate monopoly power.
Describe the Schumpeterian notion of "creative destruction"
What is the initial level of output per person? What is the level of output per person after 10 years?
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