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A new car dealer advertises financing at 0% interest over 4 years with monthly payments or a $3000 rebate if you pay cash.
(a) The car you like costs $12,000. What effective annual interest rate would you be paying if you financed with the dealer?
(b) The car you like costs $18,000. What effective annual interest rate would you be paying if you financed with the dealer?
(c) The car you like costs $24,000. What effective annual interest rate would you be paying if you financed with the dealer?
You run a small business that uses both capital and labor to produce your output. The machinery (capital) has a marginal cost equal to $25 per hour and a marginal product equal to 50 units per hour. The marginal cost and marginal product of capital a..
Explain using macroeconomic theory how an investment tax break can affect investment, productivities of capital and labor and income.
Each employer faces competitive weekly wages of $1,600 for blacks and $2,400 for whites. Suppose employers undervalue the efforts/skills of blacks in the production process. What is the value of the marginal product of each black worker? What is the ..
You deposit $1,000 into an account at the end of each year starting at the end of year 1. This account earns 7% interest compounded annually. How much money will you have at the end of 8 years? Note: you will make the final deposit into the account a..
Do price reductions always result in higher profits? For example, if the demand for a firm's product is price inelastic, will the firm increase its profits by cutting its price? Explain.
Elasticity of supply: Using the data below, answer the following questions: Close Substitutes Quantity Demanded Price Quantity Supplied. Write out the midpoint formula for elasticity of supply (formula only, no numbers): Use the data from above to ca..
q1. 1. suppose mpc is 0.8 initially. households then change their behavior so that the mpc falls to 0.75. what happens
Communication Flows in organisations. Give an example of a communication for each of the 4 flows. Explain your answer.
q.a new production technology for making vitamins is invented by a college professor who decides not to patent it. thus
Explain how a budget deficit might lead to an appreciating currency and a trade deficit. Explain the introduction of the foreign sector makes the fiscal policy tool of the budget deficit less effective in stimulating the open, as compared to the clos..
Quality Motors, Inc., refused to sell a car to Hays because he was only 16 years old. However, Quality told Hays that they would sell the car to an adult and then show Hays how to transfer the title to his name. Hays agreed with the scheme and came b..
A profit-maximizing monopolist named Billy faces an inverse demand function described by the equation p(y) = 40 - y and his total costs are c(y) = 7y, where prices and costs are measured in dollars. In the past Billy was not taxed, but now he must pa..
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