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What is an economic indicator? How are economic indicators used? Discuss an economic indicator that would be useful in making personal decisions and/or decisions at your workplace? Your answer should not discuss an index, such as the indexes of leading, coincident, and lagging indicators. Instead, it should discuss a specific indicator/economic statistic
A total of $400,000 will be deposited one year from now for the gas pipeline maintenance in the area. They estimate that the deposit amount will increase by $80,000 per year for 6 years thereafter, determine the equivalent: (a) Present worth and (b) ..
Freddy the Meek has $36 to spend on waffles W and French Toast F. The prices are $3 and $4, respectively. What is the budget constraint? How many more waffles does an additional dollar spent on W buy? How many more French Toasts does an additional do..
Explain what a “fiscal externality” is, and give an example of fiscal externality. Explain in words why it is important to know whether a reduction in taxable income following an increase in tax rates creates a fiscal externality. How is your answer ..
A firm in Perfect Competition has a Total Cost Function: TC = 6Q^2 - 8Q + 12 with a current P=$6. What is the current Quantity and Profit or Loss? Will firms enter or leave the industry? What will be the long run Price and Quantity?
Tom views orange juice and apple juice as perfect substitutes: He is always indifferent between 3 glass of orange juice and 2 glass of apple juice. Suppose the price of orange juice is $1 per glass and the price of apple juice is $2 per glass. Tom ha..
Sheridon Corporation is investigating automating a process by purchasing a new machine for $519,000 that would have a 6 year useful life and no salvage value. By automating the process, the company would save $135,000 per year in cash operating costs..
The figure above shows a nation's production possibilities frontier for apples and oranges. What combination of goods is represented by point B? Which point represents an unattainable combination of goods?
Now assume that the economy is open and that the world interest rate is determined on the world market instead of in the domestic economy. Use a two-country model with initial current accounts equal to zero. How does an increase in domestic wealth af..
Compute equilibrium price also quantity. Illustrate what would have occured if price had remained the same
Both banks that each of their entire $20 million loan package will be written off as bad loans. Will any of the two banks survive this crisis? Explain carefully.
"If the demand for reserves did not fluctuate, the Fed could pursue both a non-borrowed reserves target and an interest-rate target at the same time." Is this statement true, false or uncertain? Explain your answer
DATA SET E Microprocessor Speed (MHz) and Power Dissipation (watts) (n = 14 chips) Chip Speed (MHz) Power (watts) 1989 Intel 80486 20 3 1993 Pentium 100 10 1997 Pentium II 233 35 1998 Intel Celeron 300 20 1999 Pentium III 600 42 1999 AMD Athlon 600 5..
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