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A. One roommate says that he buys stock only in companies that everyone believes will experience big increases in profits in the future. How do you suppose the price-earnings ratio of these companies compares to the price-earnings ratio of other companies? What might be the disadvantage of buying stock in these companies?
B. Another roommates says he only buys stock in companies that are cheap, which he measures by a low price-earnings ratio. How did you suppose the earnings prospects of these companies compare to those of other companies? What might be the disadvantage of buying stock in these companies?
What are the factors that affect pay differentials? How does each factor increase or decrease relative wages?
We want to consider elucidate how a change in the U.S. money supply affects interest rates. On all graphs label initial equilibrium point A.
Illustrate what fraction of the total variation in trades of Bright Side remains unexplained.
In what sense can this be said to be unfavorable to the trade partner. Does this mean that the welfare of the trade partner has definitely declined.
assuming economy is in a long run equilibrium, show fraction of total output earned by labour and fraction of total output earned by capital. Explain why, in long run, firms make zero economic profits in this economy.
What impact will high and variable rates of inflation have on the economy? How will they influence the risk accompanying long-term contracts and related business decisions?
Price elasticity of demand for stock is 1.5. This means that foe every 10% increase in stock prices, the quantity demanded will decline by 15 %. Does this make sense? explain.
Elucidate what happened to Ikonomia's net foreign assets during 2007. Did it acquire or lose foreign assets during the year.
Verify all values and quantities computed in the discussion. Now suppose that intermediaries come from a competitive market with an equilibrium price of $8 per unit for their services,
If he continued to work exactly as many hours as he did before the wage increase, how much more money would he have each day to spend on consumption?
What can be accomplished about the impact of transportation costs on the price of the traded product in each trading nation.
Explain and graphically illustrate the effects of the tax cut on aggregate output, consumption, employment and the real wage.
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