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What is the equivalent present value of the following series of payments: $7000 the first year, $6500 the second year, $6000 the third year, $5500 the fourth year, and $5000 the fifth year? The interest rate is 10%, compounded annually.
Illustrate what does this tell you about the observability and accuracy of real interest rates compared to nominal interest rates.
Why might the existing firms in a cartelized industry prefer to be regulated by the government? What is the problem with common property resources?
Draw an aggregate demand(AD)-aggregate supply (AS) complete framework that shows where the US economy in a full employment equilibrium& then where it is now.
Describe pricing strategy to meet organizational goals.
Account for the effect of the two proposed fiscal policy actions in the short run and long run. This includes a description of the consequences of relevant macroeconomic variables.
Discuss how a change in price affects total expenditure by filling in each cell with resulting change in total expenditure.
A Monopolist is deciding how to allocate output between two markets. The two markets are separated geographically. Demand and marginal revenue for the two markets are given by:
Think about the trade off in work and leisure during a given day, and from day to day. During a given day, does opportunity cost of work rise, decline, or remain constant with each additional hour of work?
Has the time come for government to abolish rent controls and minimum wage? What do you think? Do both rent controls & minimum wage laws achieve their intended purposes?
Differences between Classical and Keynesian views of economy. Explain the situations that led to development and dissemination of Keynesian economic theories.
What is her marginal rate of substitution when L = 100 and she is on the budget line? What is her reservation wage? What is her optimal combination of C and L?
Illustrate what price-quantity combination maximizes your firm's profits. What price-quantity combination maximizes revenue.
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