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Most U.S. banks are privately owned, profit-making organizations. Although they provide a service just as many other businesses, banks differ because of their importance in the macroeconomy. Policymakers have debated whether banks should be permitted only to do banking business or whether banks should be permitted to engage in other lines of business such as selling insurance or buying and selling stocks and bonds.
Assuming 176 hours per month and an 8 hour day, what is the true hourly cost of this trainee to the company.
If I spent all my money ($450,000) on a new house I could buy a house with 4500 square feet. I settle for a 1500 square foot house. (Each square foot costs the same.) The day after I close the deal a nearby nuclear power plant is condemned and the va..
Please give any two contemporary examples of efficiency wage practices and their possible effect.
Would you continue to work after winning a lottery prize of $50,000 a year for life? Would you change schools, jobs, or career objectives? What factors besides income influence work decisions?
It is priced at only $400. Assuming your opportunity cost of funds is 5 percent, which refrigerator should you purchase.
Explain why governments’ attempts to do better than free competitive markets in equilibrium at either deciding on what quantities should be produced or for what prices things should sell are likely to be a bad idea?
A consumer consumes only food (X1) and alcohol (X2) and he has a utility function U(X1,X2)=bX1+aInX2. Derive the Hicksian demand function for good 1 (h1). Show that it is downward sloping in its own price. What is the new budget constraint? What is t..
Consider two markets. The initial equilibrium for both markets is the same, P = $6.50, and Q = 41.0. When the price is $6.75, the quantity supplied of motorcycles is 53.0 and the quantity supplied of pancakes is 111.00. Using the midpoint formula, ca..
A firm has developed a new product for which it has a registered trademark.
Consider a three-period model of household choice. The real interest rate is 4 percent. A household wants to have $10,000 available for consumption during last period of life (retirement). Using the household’s wealth constraint, how much does it hav..
Explain how do efficiency techniques differ in short- versus long-run when attempting to maximize profits. Illustrate what specific incentives are used in your workplace to promote efficiency.
The firm's retained earnings total $1.2M. The return on equity is estimated to be 11%. What is the firm's cost of capital:
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