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Helen is buying a $12,375 car with a $3000 down payment, followed by 36 monthly payments of $325 each. The down paymentis paid immediately, and the monthly payments are due at the end of each month. What nominal annual interest rate is Helen paying? What effective interest rate?
Suppose velocity of money is constant, the growth rate of real GDP is 3% per year, and the growth rate of money is 5% per year. Consider this a “baseline.” What is the rate of inflation in this baseline case? What happens if the growth rate of money..
About 95 percent of the world's population lives outside the United States, but many U.S. companies, especially small businesses, still do not engage in global trade. Why not? Do you think more small businesses will participate in global trade in the..
In trying to measure the extent to which labor unions are responsible for increasing wages, economists use sophisticated statistical methods to compare the wages of unionized workers with those of non-unionized workers. Explain why it is not legitima..
What are the advantages of buying a business rather than starting one from scratch? What are the advantages and disadvantages of owning a franchise?
If the data represent 10 months of production for one plant of a specific company, would you consider this to be a short run analysis? How would your answer to question 3 changes if you were told that the data represent 10 different plants during a p..
When OPEC raised the price of oil dramatically in the mid-1970s, experts said it was unlikely that the cartel could stay together over the long term
Your company owns a piece of land and is in the middle of purchasing this property to expand their footprint in the community.
For the no colluding oligopolist, there are two factors that affect the decision to raise production.
q1. suppose that there are only 2 inputs i.e. labor and natural resources which produces 2 goods i.e. movies and
Discuss within your Learning Team how and why the U.S.’s deficit, surplus and debt have an effect on the following:
Consider the following version of our one period macro model. The representative household’s preferences are defined over consumption C and labor N. Their preferences are given by the utility function U(C, N) = C −( N^(1+ (1/ν))/( 1 + (1/ν) where ν >..
q1. suppose the parliament passes legislation making it more difficult for firms to fire workers e.g. law requiring
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