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Suppose a wage increase from $19 to $21 an hour increases the number of job applicants from 50 to 64. What is the price elasticity of labor supply?
Instructions: Enter your response rounded to two decimal places. Use the mid-point formula.
Now discuss the fact that deflation is the central bank's worst nightmare. Make sure you refer to a real interest rate of -2.68%. Why is this environment such a nightmare for the central bank and monetary policy?
Are innovative product and service offerings ethically neutral? Consider Napster and the intellectual property issues associated with swapping music over the Internet as an example to begin the discussion.
Explain how could ABC use interest rate swaps to reduce the exposure of its cost of debt to interest rate movements.
Interpret the following graph showing the potential changes in supply of money compared to the demand for money. The demand for money is represented by line MD and the initial supply of money is represented by line MS. If there is no change in the in..
Consider the following market game: An incumbent firm, called firm 3, is already in an industry. Two potential entrants, called firms 1 and 2, can each enter the industry by paying the entry cost of 10. First, firm 1 decides whether to enter or not. ..
In the case Discover Bank v. Owens, Owens received a Discover credit card with a limit of $1.900 and charged $1.460. The credit card agreement allowed Discover to add fees and increase her interest rate when Owens paid her bill late or did not pay in..
Find the optimal capital and labor inputs given the production function f (k, l) = ak + bl and that the output price is given by p, the rental price of capital is r and w is the wage.
Illustrate what other additional information do you need, and how would you proceed if you had that information.
Why is the average fixed cost curve always declining
Compare the sum of consumer and producer surplus for the monopoly with the results for perfect competition.
Why might governments nationalize firms and do they have added advantage or unfair one over the private owned firms? What are the different forms of terrorism and how can international managers meet this challenge?
The Federal Reserve had to resort to non-standard methods to try to stimulate the economy the last several years in part because:
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