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An engineering student must decide whether to pay for auto insurance on a monthly or an annual basis. If paid annually, the cost is $1650. If paid monthly, the cost is $150 at the start of each month. What is the rate of return for buying the insurance on an annual basis?
In a competitive industry the market-determined price is $12. A firm is currently producing 50 units of output, average total cost is $10, marginal cost is $15, and average variable cost is $7. In order to maximize profit, the firm should
The discussion of the multiplier in the last chapter shows how a change in autonomous spending increases real GDP by a multiple of itself. For example it the multiplier is 4 and the change in autonomous spending is $100, and then the real GDP is $400..
Draw a diagram showing the combined labor market for secretaries, nurses, and teachers. Draw a diagram showing the combined labor market for all other fields. In which market is the wage higher? DO men or women receive higher wages on average?
Explain why does this happen. Research the recent history of gasoline pricing in your area, and attempt to relate any fluctuations you observe to documented supply and demand factors.
Oregon has an income tax but no state sales tax, while Washington has no state income tax but does have a state sales tax. Oregon residents can deduct the state taxes they pay (the income tax payments) from their federal income taxes, while Washingto..
The Haig-Simons approach is widely used as a guide for defining income. What would be the administrative problems in attempting to use this approach in the real world? Why might people disagree with the use of the Haig-Simons definition?
1. Explain hidden shares. How do they work? 2. Name of seven layers in Open System Interconnection model. 3. What is the difference between ARP and RARP?
Assume that a hypothetical economy with an MPC of 0.75 is experiencing severe recession. By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion? $ billion.
The XYZ Corp. is considering the purchase of a delivery truck for $50,000.It is expected to generate net cash flow of $25,000 per year for three years after which, or at the end of year 3, will be sold for an estimated $20,000. With an MARR of 5%, ca..
Discuss how each of the following sources of real business cycles would effect the economy:
Anna spent two thirds of her instance sewing dresses, and the other third of her time doing administrative work. Prepare Balance Sheet for Manning Style.
It is observed that in an area with a lot of illegal immigration, the average wage of native born workers actually increased. Explain how this could have happened, using economic logic. Also, judge whether this is good or bad for the local economy.
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