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Explain David Ricardo's theory of rent and Thomas Robert Malthus' theory of population. Why did their contemporaries call them the "dismal scientists?" Why were their predictions not correct in their time?
Suppose a perfectly competitive firm sees that price is $23 in the market place. It notices that the cost of producing the next unit of output is $26. What advice would you give to this firm?
Illustrate what is the effect of this policy on the interest rate in the long run.
Delta and Southwest Airlines announced a new round of fare discounts. In response Sangita Woerner, Vice President of Marketing at Alaska Airlines, said, “It’s unlikely that we will match these fare reductions because we do not anticipate any negative..
In a closed agricultural economy, a new water source has been discovered that is expected to provide a steady supply of water for the crops and thereby increasing expected output in the future. What happens to the real interest rate and output? Descr..
A company currently pays a dividend of $2 per share (D=$2). It is estimated that the company’s dividend will grow at a rate of 20% per year for t the next 2 years, then at a constant rate of 7% thereafter. The company’s stock has a beta of 1.2, the r..
Compared to fixed interest rates, variable rates are riskier for the borrower but less risky for the lender. Compared to fixed interest rates, variable rates are riskier for the lender but less risky for the borrower. Variable rates are equally risky..
Loans and deposits within a bank are: If Anna were to convert some of her checkable deposits into a (small denomination) certificate of deposit, which of the following changes would take place?
Charlie has $ 1000 to allocate between football tickets and movie tickets over the year. The price of each football ticket is $50, and the price of each movie ticket is $10. His marginal rate of substitution of football tickets for movie tickets equa..
A company purchased equipment for new highway construction in Manitoba, Canada, costing $500,000 Canadian. Estimated salvage at the end of the expected life of 5 years is $50,000. Various acceptable depreciation methods are being studied currently. D..
In the last years of the 1980s exports increased dramatically. The effects on the U.S. economy include, ceteris paribus,
International marketing researchers often begin by studying _________trade reports from the U.S. Department of Commerce. Data gathering methods may have to be modified to allow for _________ differences. Elements, units or individuals of interest to ..
Two months after it began selling the food, its pet food sales declined dramatically because a competitor across the street started selling the identical food for $ 22 per bag. Should Roscoe's Rascals match the price offered by the competitor.
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