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Suppose that the U.S. net foreign debt is 25 percent of U.S. GDP and that foreign assets and liabilities alike pay an interest rate of 5 percent per year. What would be the drain on U.S. GDP (as a percentage) from paying interest on the net foreign debt? Do you think this is a large number? What if the net foreign debt were 100 percent of GDP? At what point do you think a country's government should become worried about the size of its foreign debt?
The hypothetical figures in the table below give five alternate combinations of steel and autos that Japan and South Korea can produce it they fully use all factos of production at their disposal with the best technology available to them. After s..
The Teenager Company makes and sells skateboards at an average price of $70 each. During the past year they sold 4000 of these skateboards. The company bellieves that the price elasticity for this product is about -2.5.
Tom earns $15 per hour for up to 40 hours of workeach week. He is paid $30 per hour for every hour in excess of 40.Tom faces a 20% tax rate and pays $4 per hour in child careexpenses for each hour he works.
What changes are occurring in the economy or concerning licensing and regulatory factors that must be considered in the future for health care economics in the united states?
Consider your current or former salary against the salary of pro sports players and movie stars. Michael Jordan made $40 million per year playing basketball and endorsing products in his day.
a. What is the real value of output (Q) Now assume that the Fed increases the money supply by 10 percent and velocity remains unchanged. b. If the price level remains constant, by how much will real output increase.
Assume that the world price of Good A is $8 per unit while its domestic price is $6, and the marginal cost incurred by domestic producers for producing one unit of Good A is $5. If the government imposes a tax of $3 per unit on domestic producers.
Joe has never trusted banks and always kept his money in cash. Joe pulls out his money jar, discovers that it has $20,000 in it, and decides it is unsafe to keep that much cash. Joe stops at the Local National Bank the following day, opens a check..
a Caribbean wedding was less than $10,000. Listed below is a total cost in $000 for a sample of 8 Caribbean weddings. At the .05 significance level is it reasonable to conclude the mean wedding cost is less than $10,000 as advertised? 8.6 9.2 10.4..
Suppose initially (period 0) the economy is endowed with $5 (billion) of capital stock and 10 (thousand) workers (let's ignore the units). We know that saving rate s is 0.15, population growth rate n is 0.01 and depreciation rate d is 0.09.
The Fox River is boarded on the east by Illionis Route 25 and on the west by Illionis Route 31. along one stretch the of river, there is a distance of 16 miles between adjacent crossings. An additional crossing in this area has been proposed, and ..
wedding plan with cake (c) and champagne (h) - price per glass and slice u(h,c) = h^(1/3)c a) solve foc's to derive the demand functions h(P(subscript h), P(subscript c), M) and c(P(subscript h), P(subscript c), M)
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