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As distinguished from sole proprietorships and partnerships, why is the corporation type of legal organization so valuable to a firm? Is the corporation type of legal form a right or is it a privilege?
This is a historical look at a 100-year period of economic growth and production potential. In this 100-year period the world experienced multiple world wars, the ever-present business cycles, including the Great Depression, many natural disasters an..
Suppose that the economy starts at equilibrium and the mpc = 0.8. Illustrate what would be the effect of a $300 increase in taxes once all the rounds of the multiplier process are complete.
Suppose that after five years consumer spending doubles to 400. Explain how much do you believe will be the budget share of leisure.
Consider and economy with the following production technology: Y = 9K1/3 L2/3 , where the aggregate capital stock is K=100, and aggregate labor is L=100. The price of output is 1. a) Compute the equilibrium wage and capital return. b) Compute total p..
You are buying a bond at a quoted price of $892. The bond has a 7.5 percent coupon and pays interest semi annually on February 1 and August 1. What is the dirty price of this bond if today is April 1. Assume a 360-day year.
Although the central banker didn't say so, this may ultimately compel him to resort increasingly to managing the money supply by managing banks' excess cash reserves-the stuff from which banks create loans. What are excess cash reserves? Why are the..
What are the export regulation in Italy? What type of paperwork and bureaucracy are needed to export? Does the government provide assistance? Any government organizations to help exporters?
Suppose James has utility over wealth given by u(w) = w 1 2 . Putting utility on the y-axis and wealth on the x-axis, use a graph to show why James would rather have $100 for sure instead of a gamble where he gets $20 20% of the time and $120 the res..
When firms decide to offer health insurance to their workers [for simplicity we assume they pay the full cost of the policy and do not ask for an employee contribution], they need to reconsider the wages they are willing to pay their workers. Assume ..
Three policies used to restrict trade are: Tariffs, Quotas, and regulatory trade restrictions. Discuss pros and cons of each. If the government has to decide on one which one it will?
Discusses an example of a regulatory measure which was supposed to serve public interest, but in reality serves private interest.
Jane just finished a Pepsi and is wondering what to do with the can. She takes a moment and thinks about the actions available to her, and decides that she can either recycle the can or throw it on the ground. the rightness or wrongness of an action ..
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