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What is the "velocity of money"? Why is it important to the macro-economy?
Baby boomers can save up to $25,000 per year in a 401k account. If Eileen's starting balance at age 53 is $220,000 and she saves the full amount available to her, how much money will she have saved when she is 65 years old (after 12 years of saving)?..
A large food-processing corporation is considering using laser technology to speed up and eliminate waste in the potato-peeling process. To implement the system, the company anticipates needing $3.5 million to purchase the industrial-strength lasers.
Different products have different elasticities. Heart medication, for example, is inelastic, and corn is elastic. Find a product that has not already been selected by another student and describe its price elasticity and income elasticity.
Find the equilibrium level of interest rate. Find the equilibrium level of output. What variable does this relationship represent?
In the short run, prices may rise faster than costs. This chapter discusses why this might happen. Suppose that labor and management agree to adjust wages continuously for any changes in the price level. How would such adjustments affect the slope of..
Adam Smith was a product of the Scottish enlightenment. Why is this important? Summarize his political-economic vision and his main contributions including his theory of moral sentiment, the division of labor and its implications, his theories of val..
When the price of pears fell to $3, what part of the change in Sarah's demand was due to the income effect and what part was due to the substitution effect?
How is consumer surplus defined and what does it attempt to measure? Suppose that a firm is able to perfectly price discriminate in a market. If a firm does this, what happens to consumer surplus in the market? Is price discrimination fair? Why or wh..
What factors influence Under Amour's ability to make an economic profit in the cross-training shoe market.
To protect American jobs, the U.S. government may decide to cut U.S. imports of bulldozers by 60 percent. It could do so by either (a) imposing a tariff high enough to cut bulldozer imports by 60 percent or (b) by persuading Komatsu and other foreign..
Assume that the market for wheat is perfect competitive, with demand curve P = 5000 − 0.01QD and a supply curve P = 1+0.1QS. What is the marginal revenue for each of the perfectly competitive firms? What is the profit maximizing quantity of output fo..
The world has gone through several different international financial orders over past 100 years. Explain how each one came into being and why the order eventually ran into difficulties and was suspended by another order.
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