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A firm is considering 2 capital investment projects. Project A involves an initial cost of $125,000. The discounted present value of all future cash flows is $145,000. Project B requires an initial expenditure of $85,000. The discounted present value of all future cash flows is $102,000.
If Social Security were considered part of the general budget then,
Suppose two countries, A and B, with the same production function Y = K? L1?? . The value of ? is 0.30, the growth rate of population is 2% and the depreciation rate is 5%. Show that with price-taking firms the share of labor must be 1?.
“The pervasive problem of scarcity means that every society must choose among alternative uses of its limited resources. Society has only so much labor, capital, land and entrepreneurship that can be used to satisfy the unlimited wants of its members..
"Low demand in this year's economy caught producers unaware, forcing their inventories to increase." How does this inventory change appear in the GDP calculation when adding up all expenditures?
As an economist working at the International Monetary Fund, you are given the following data for South Africa: predicted per capita GDP, relative to the United States, as given by y=k^1/3, is 0.55, and total factor productivity is 0.33. What is the o..
The use of? utility-based consumer choice theory
Discuss the importance of the command process and the traditional process in the making of management decisions. Illustrate specific ways in which managers must take these two processes into account.
John Smith expected income in period two is unchanged. Illustrate graphically explain how this job loss affects John's consumption in periods one and two.
What is the profit-maximizing unit price PoolVac should charge for Sting Ray - Evaluate the statistical significance of the three estimated parameters using a significance level of 5 percent. Be sure to comment on the algebraic signs of the three p..
In explaining the 2003 bill to cut taxes, President Bush is quoted as saying, “When people have more money, they can spend it on goods and services.” In the IS–LM model, will a tax cut change the money supply in the economy? Explain.
The owner of an exhaustible resource should ________ current extraction rate if the expected price increase of the resource is ________ the interest rate.
Suppose that civilian non-institutionalized population (CNIP) is 120 million, and the labour force participation rate is 65%. What is the unemployment rate if employment is equal to 70 million? Justify your answer.
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