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Melanie sets up her own business. Her hair salon earns $10,000 in revenue a month. She spends $500 per month on supplies (shampoo, brushes, etc). Her tools depreciate at a rate of $600 annually. Before she started her own business, she previously earned $3,000 per month as a hairdresser in another salon. Her equipment is very specialized and has no other uses. What is Melanie's economic profit per month?
Donald Trump says he will force Mexico to pay for a wall between Mexico and US. Suppose the Mexican government builds such a wall. Using a Keynesian 45 model, illustrate and explain the effect on the GDP, unemployment, and the price level in Mexico.
Discuss Explain how "Game Theory" can be used to improve strategic decision making in competitive situations.
According to a Wall Street Journal article "MCI, in New Phone War Skirmish, Files Suit over AT&T Ad Claims," MCI was upset with AT&T over allegedly false claims that AT&T's service is cheaper than MCI's. Based on this data, estimate the equation for ..
An engineering company has determined that $100,000 per year will be needed to maintain a new bridge.
Japanese GDP in 2010 was 480 trillion yen (U.S. GDP, again, was $14.5 trillion). The exchange rate in 2010 was 87.8 yen per dollar. Contrary to China and India, however, Japan had higher prices than the United States: the price level in Japan (conver..
Analyze four economic indicators (unemployment rate, quits rate (quit rate in U.S. English), housing starts, consumer price index (a measure for inflation), consumer leverage ratio, industrial production, bankruptcies, gross domestic product, broadba..
Elucidate in detail the interrelationships between economic facts, theory, and policy. Critically evaluate this statement: "The trouble with economics is that it is not practical. It has too much to say about facts."
An important way to reduce water pollution from farms is to plant a buffer zone between crops and the water. Economists estimate that for each bush there is a $20 gain in reduced pollution. What is the market clearing equilibrium price and quantity?
Determine impact on income of a 50 increase in government spending from 250 to 300. Using original data, compute impact of a 50 decrease in taxes from 125 to 75.
Fowler Credit Bank is offering 5.7 percent compounded daily on its savings accounts. You deposit $4,100 today.
Drag each item to the appropriate category of evaluations a manager must make when examining a country's attractiveness. Roll over each item for a detailed description.
In the space below, draw the new Keynesian sticky prices model. Label completely and correctly. Next, suppose there is an output gap. Suppose the government chooses to use scal policy to close the output gap. Illustrate this approach. State why each ..
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