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Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $70,000 and her store made $140,000 in profits (not counting payment to her top manager). She suspected the store could do much better and feared the fixed salary was causing her top manager to shirk on the job. Therefore, this year she decided to offer him a fixed salary of $32,000 plus 16% of the store’s profits. Since the change, the store is performing much better, and she forecasts profits this year to be $260,000 (again, not counting the payment to her top manager). Assuming the change in compensation is the reason for the increased profits, and that the forecast is accurate, how much more money will the owner make (net of payment to her top manager) because of this change?
Describe the economic status of South Korea. What types of economic activities are most prominent there? What factors have led to your region's growth or lack thereof?
After reading about the Gold Standard, William Jennings Bryan’s emotional speech, write a summary/essay analyzing what might have happened if William Bryan’s had won the 1896 election in the United States? Most likely, Jennings would have taken the U..
q1. in reading the national business news that mortgage rates improved by 50 basis points. if mortgage rates were
Consider a small country that exports steel. Assume that a "pro-trade" government deicdes to subsidize the export of steel by paying
Economies of the Countries X and Y satisfy the Solow model with α = 1/3. In Country X the rate of investment is 7%, and in Country Y it is 28%. The two countries have the same levels of productivity, A, and the same rate of depreciation, δ. 8. What i..
For the Utility function U(x,y) = y + (x)^1/2, calculate the following: Hicksian or Compensated demand functions. Expenditure function
A wealthy businessman wants to start a permanent fund for supporting research on sustainability. The donor plans to give equal amounts of money for each of the next five years, plus one gift now (i.e., six donations in total), so that $100,000 per ye..
The environmental protection agency of a county would like to preserve a piece of land as a wilderness area. The current owner has offered to lease the land to the county for 20 years in return for a lump-sum payment of $1.1 million, which would be p..
Consider the following information for a simultaneous move game: If you advertise and your rival advertises, you each will earn $5 million in profits. If neither of you advertises, you will each earn $10 million in profits. If you and your rival plan..
Calculate the official unemployment rate (called “U-3”). Calculate the unemployment rate by including discouraged workers as unemployed and in the labor force (this is called “U-6”). Which unemployment rate is larger?
Some economists and policymakers argue in favor of replacing the current income tax in the USA with consumption tax. What are your opinions on the issue? How do think such change impacts your income and expenditure pattern?
Which of the following is a characteristic of civil law?
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