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Determine whether the following transactions involve spot exchange, contracts, or vertical integration. Explain.
1. A major oil company refines gasoline from crude oil produced by oil wells that it owns.
2. Transcontinental, an interstate natural-gas pipeline, has a legal obligation to purchase a specified amount of gas per week from a well owned by Fred Smith in Enid, Oklahoma.
3. A cabinetmaker purchased a dozen wood screws from the local hardware store.
4. An electric utility purchases coal from an underground mine.
Elucidate the multiplier concept as it applies in this case. Explain what are the qualifications and limitations of the multiplier model.
Alex's Furniture Mart produces and sells tables in a perfectly competitive market. When Alex's Furniture Mart produces and sells 250 tables.
Elucidate the disadvantage of the simultaneous lending strategy. Be mindful of the group lending scheme which Grameen Bank adopts.
If your neighbour returns from a shopping trip saying that she got a lot of consumer surplus from her purchases
If the price above the equilibrium level, would you predict excess supply or excess demand? If the price is below the equilibrium level, would you predict a shortage or a surplus? Why?
Assume that the society decided to reduce consumption also increase investment. Explain how would this change effect economic growth.
The optimal capital structure is the mix of debt, equity, and preferred stock that minimizes the company's cost of preferred stock.
Show that if the food stamps could be legally re-sold, the welfare of the household would be increased. Give one reason why food stamps should not be re-sold.
q1. when the value of a nations imports exceeds the value of that nations exports the nation is said to have what?q2.
The rate at which one input may be substituted for another input in the production process, while total output remains constant
Consider a country’s trade off between the production of two ‘goods’: environmental quality (extent to which their environment, including air and waters, are clean), and all other goods. Why is there a trade off? Explain.
Assume that economic growth is slower in the United States than in its trading partners. Given a system of floating exchange rates, will the impact of this growth differential be for the United States with respect to exports and the value of the doll..
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