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John has decided to start his own lawn-mowing business. To purchase the mowers and the trailer to transport the mowers, John withdrew $1,000 from his savings account, which was earning 3% interest, and borrowed an additional $2,000 from the bank at an interest rate of 7%. What is John's annual opportunity cost of the financial capital that has been invested in the business?
a) the market value of all final goods and services produced withing Wrexington in 2006 is what B) Gross national product for Wrexington in 2006 is what c) Net national product for Wrexington in 2006 is what d)National income for Wrexington in 2006 i..
Suppose that a state provides subsidies for a company to build plants that contribute to air pollution. Cleaning up this pollution causes the marginal cost of air cleanliness to rise by $210,000 at each degree of air cleanliness. What is the optim..
How large is the MI money supply How large are required reserve How large are excess reserve By how much could the banks increase their lending activities What will be the total effect on the M3 money supply
Remembering that the change in the capital stock is investment less depreciation, use a calculator or a computer spreadsheet to show how the capital stock per worker will evolve over time in both countries. calculate income per worker and consumpti..
My paper firm generates a monthly profit of $500,000 as I dump a noxious affluent into the nearby river due to the absence of law or regulation. Your downstream brewery must therefore filter the water before it is used to make beer which, in turn,..
The loan is to be repaid in seven equal annual installments including interest. The firm's marginal income tax rate is 39%. The equipment qualifies for MACRS 5-year property. a. Calculate the interest on loan for each year.
Since Fall of 2011, the price of oil has shown a sharp increase again as continuation steady rise in oil price attributed to the Arab Spring (the political uprising in the Middle Eastern and North African countries) started in the beginning of 201..
Suppose equilibrium exists in the market for loanable funds. Use the following information to determine the quantity of funds supplied in this market. GDP $8.7 trillion Consumption Spending $3.5 trillion Taxes minus Transfers $2.7 trillion
Keynes rejected the classical notion of Say's law. He argued that under-spending was very likely. Keynes focused on aggregate demand (total spending) as being the key determinant to the level of macroeconomic activity not aggregate supply which wa..
If your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year, by what percentage would your real income (approximately) increase If your nominal income rose by 2.8 percent and your real income rose by 1.1 percent..
The state of Connecticut is well known for its almandine garnet. The Almandine Garnet Mine has plans to extract 80 tons over the next two years. The production benefits and costs are: MB = 40 ? 0.1Q MC = 36 + 0.25Q Assume..
Compute the percentage change n nominal GDP, real GDP, and the GDP deflator n 2009 and 2010 from the percentage year. For each year, identify the variable that does not change
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