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The inflation rate of Price land is at 3%. It is predicted to stay at 3% for the next 5 years, and drop to (and stay at) 2% after 5 years. What is the PW of a cash flow that pays $1000 per year forever if the real rate of return is 5%?
State whether each of the following events will cause a movement along the demand curve for Big Mac or whether it will cause the demand curve for Big Mac to shift? Fast-food restaurants post nutrition warning labels.
Assume that the free trade unit price of a lamp is $200 and unit cost of an input for a lamp is $100. Given this information about lamp production in a country, calculate the effective rate of protection (ERP) afforded to the lamp industry by a 12% t..
Which of the following is true concerning negative externalities?
Calculate lim x?0- f'(x) and lim x0+ f'(x). Calculate f''(x), and find any inflection points and the intervals on which f(x) is concave up and concave down.
Which of the following scenarios will cause a higher price level in the long run?
For years, local and state agencies, as well as the federal government, have struggled with what should be done with those offenders who have been sentenced to prison for violations of the law. Two popular options remain: house them (retain) or rehab..
Consider a monopolistic rm that can produce any quantity of its product at a constant marginal cost equal to $20,000 and a fixed cost of $10 billion. Its products could be sold in two different markets: Europe and U.S. What quantity should the firm s..
Show that the consumer is better off with a lump-sum tax rather than a proportional tax on wage income given that either tax yields the same revenue for the government. You must use a diagram to show this. (Hint: the consumption bundle the consumer c..
If you were to learn about a bottle of gatorade increased in size from 2009 to 2010, should that information affect your calculation of the inflation rate. If so, how.
q. 1. did you find that the items grouped together as you worked down the flow chart had similar characteristics in
Summarize Kuznets's Inverted-U Hypothesis and discuss the conceptual merits and limitaions of this hypothesis, especially in reference to African countries.
Assume the marginal propensity to consume for U.S. households equals .9, and the marginal propensity to import for the united states equals .1. Suppose an increase in investment of $10 million occurs at each level of income. What does the value of th..
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