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Janice really likes potatoes. At best any other goods are worth less than a dollar to her, potatoes cost $1.00 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30.
You are considering purchasing stock. The stock is expected to pay a dividend of $87 per share. The consensus of investors is that these dividends will increase at a rate of 3 percent per year for indefinate future, and the interest rate is 7 percent..
If interest rates differ between two countries, it is an indication that the financial markets are not in equilibrium, and that investment flows should be taking place between the two countries. Agree? Disagree? Explain.
Suppose two countries, A and B, with the same production function Y = K? L 1?? . The value of ? is 0.30, the growth rate of population is 2% and the depreciation rate is 5%. Compare both economies to the Golden Rule.
Identify at least four things that will likely affect an individual’s demand for medical care. Which will likely have the best ability to predict spending for a single individual? Which for groups of people (assuming that you do not know anything abo..
Consider our simple model of a system of factory cities. Why is there more than one city? Does anyone in the region produce both shirts and bread? Why? Suppose transportation technology improves. What will happen to the system of cities, holding al..
q1. the jones company has just completed the third year of a five-year macrs recovery period for a piece of equipment
Santiago is from Spain but lives in Texas. Ryan is from England but he lives in Arizona. A car dealer in Texas buys a new BMW from a BMW factory in Arizona for $51,567 and later sells the new BMW to the final buyer, who is Santiago for $75,120. Later..
If the general education level within a country rises significantly over time,
q1. 1. what might be the goal of a museum? of a firm? what are the basic steps in all types of decision making
q.in economic history there have been many great economists who have developed theories concepts and ideas which have
The economy has two sides. One side is the aggregate demand side. Elucidate the relationship between the price level and the quantity demanded of Real GDP.
A building is priced at $250,000. If a down payment of $25,000 is made and a payment of $5000 every month thereafter is required, how many months will it take to pay for the building? Interest is charged at a rate of 9% compounded monthly.
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