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Based upon your readings in Chapter 28 and the hypothetical above with Marty Mad, pretend that you still have your car detail business (that we've discussed this session). Your business is expanding and you're contemplating hiring 1 or 2 part-time employees. Right now you are operating as a sole proprietor, doing business as Trusty Car Detail.
Would you change your business entity before you hire any employees? Why or why not? If so, what kind of entity would you select. Explain. Do your readings this week deter you from hiring any employees or continuing with your car detail business?
After calculating the sample size needed to estimate a population proportion to within 0.05, you have been told that the maximum allowable error (E) must be reduced to just 0.025.
Should companies have a big role in improving the world? Do you think the pharmaceutical businesses have a social responsibility to make drugs that will combat diseases that are a result of poor living conditions, even though profits will be limited?..
An economy has $72, to divide between Hamlet and Ophelia. Hamlet has the utility function u[H] = U[H] (m[H]) = 3m[H], where m[H] denotes his quantity of money. Ophelia has the utility function u[O]= U[O](m[O]) = 42sqrt(m[O]), where m[O] denotes her q..
What happens to the aggregate quantity demanded in nominal terms over this interval? Using the formula for price elasticity of demand what is the elasticity of aggregate demand over this interval?
Illustrate this on two graphs with the AS/AD curves: show one AS/AD diagram with a soft monetary policy, and next to it another AS/AD diagram we an aggressive monetary policy. Show pi_1 and Y_1 as well as the long run values of inflation and short-ru..
Suppose there are two types of people who need health insurance; high-risk and low-risk consumers. High-risk consumers have a relatively high probability of needing expensive medical care and on average incur $2,000 of medical expenses per year. Are ..
What are the incentives, advantages, and disadvantages for insurance systems that pay primary care physicians through capitation when compared to fee for service?
Suppose that international markets expect inflation to average 1.7% in germany for the foreseeable future, and U.S. inflation is expected to average 1.5%. Based on that information one should expect the dollar to:
If it is illegal to sell food stamps, what does your analysis indicate about the potential existence of a black market in food stamps? Indicate graphically an acceptable price that your consumer would accept for his food stamps, and that someone w..
The output that maximizes profit is obtained where : Perfect competition is characterized by: If price is greater than average total cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm will:
Compare also contrast McDonald's strategies in China with those of Wal-Mart in Mexico.
illustrate what is the income-expenditure multiplier in this economy. Using at least two different quality tools, analyze the data and present your conclusions.
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