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Suppose an assistant professor of economics is earning a salary of $75,000 per year. One day she quits her job, sells $100,000 worth of bonds that had been earning 5 percent per year, and uses the funds to open a bookstore. At the end of the year, she shows an accounting profit of $90,000 on her income tax return. What is her economic profit?
Studies indicate that the changes in fiscal and monetary policy affect the 3 economic agents in the economy (households, firms and government). How do the changes in monetary and fiscal policy instruments affect you personally or work wise?
Why is efficiency lost at the boundaries as when substantially more of one good and very little of another is produced.
Explain do you think McDonald's new launch will have a sustainable impact on its bottom line.
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According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%. What percentage change in the CPI up unti..
One could argue that a long commute to work is an undesirable characteristic of any job. If most people live in the suburbs.
If government industry regulators underestimate the degree of competition in an industry are they likely to over-regulate the industry? Explain.
Elucidate why we still say that raising cattle is land intensive compared with farming wheat or why not.
Assume which the mix of fiscal and monetary policies is changed such which the money supply is increased by 100 while the government.
Draw the firm's MC, AVC, and AC curves. Add a downward sloping demand curve, and show the profit maximizing quantity and price. Indiate the profit as an area on your diagram. Show the deadweight loss.
Draw a demand and supply diagram of a bond market and show the equilibrium price and quantity demanded and supplied in the diagram. What are the factors that shift these demand and supply of bonds? What is the relationship between bond market prices ..
If labor is paid $100 and your average tool price is $250 what is profixt maximizing level of output and labor? What is your maximum profit?
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