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Some laboratory equipment sells for $75,000. The manufacturer offers financing at 8% with annual payments for 4 years for up to $50,000 of the cost. The salesman is willing to cut the price by 10% if you pay cash. What is the interest rate you would pay by financing?
Briefly describe the national security implications of the dependence on imported oil. Politicians of both political Parties routinely discuss the concept of achieving energy independence. Describe the reasons why this is or is not a realistic goal.
The burden of a tax falls on? _______. Capital income in the form of interest on bonds and bank deposits and dividends on stocks is taxed twice. Capital is internationally? mobile, so the supply of capital is highly inelastic. Capital income tax is p..
By comparing states that did and did not allow optometrists to advertise the price of eyeglasses, economist Kyle Bagwell found that
Explain is a high degree of market concentration a boon or threat to consumers. What is the strongest argument on either side.
Assume a world consists of only two countries: Latvia and Bulgaria, which can produce only two goods: lemons and beef. Latvia can produce 1000 tons of lemons or 500 tons of beef or any linear combination of lemons and beef that satisfies lemons+2×bee..
Calculate the elasticity of demand for good X with respect to the price of X, the price of Y, income, and advertising. Calculate consumer surplus at the profit-maximizing price if the marginal cost is $264.
How will each affect equilibrium price and equilibrium quantity in a competitive market? Will price and quantity rise, fall, or be unchanged? Based on the magnitudes of the shifts, will the answers be indeterminate?
Which of the following helps in determining wether health care cost rises because of government policy, or because of demand rising faster than supply? If minimum wage is set below the equlibrium wage, it leads to a labor surplus. Economists assume t..
Suppose that US and Mexico are each other’s sole trading partners. The Fed, afraid that the economy is about to overheat, raises the U.S. interest rate. What happens when interest rate in US changes relative to Mexico? Which curve shifts and what hap..
Given the current pressures on China, Jamaica, and America expressed in the article, how would ethics play a role in decision making for financial, environmental, and cultural issues
Explain the economic effect of tariffs, nontariff barriers, and various forms of trade policies adopted by national governments.
‘The whole intellectual edifice of [efficient markets theory] collapsed in the summer of [2008].’ (Alan Greenspan, 2009). In light of this statement, critically examine the causes of the financial crisis and critically evaluate the subsequent regulat..
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