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A colleague tells you that he can get a business loan from the bank, but the rates seem very high for what your colleague considers a low-risk loan.
A. Give an adverse election explanation for this and offer advice to your friend on how to solve the problem.
B. Give a moral hazard explanation for this and offer advice to your friend on how to solve the problem.
Suppose you are interviewing the CEO of a large company. The CEO is telling you about his or her job as a manager and how he or she spends time. Using the description below, which function of management is the CEO most likely describing in this examp..
If the prices of gold and other commodities increases how will this influence the value of rand. Explain how will a depreciation of the rand influence our exports and imports.
A company earns an annual profit of $50 million. There are 100 million share of stock outstanding. People expect a 9% return on stock. What is a share of stock in this company worth?
What do Keynesian and New classical economists believe about macroeconomic policy. Which role of thinking do you think you would fit in?
Chrysler announced a new incentive program on its minivans that included subsidized interest rates also cash allowances.
Illustrate what is the practical significance of income elasticity coefficients. Explain the significance using as examples an income elasticity.
Under oligopoly, if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.
If American cheese also cheddar cheese are substitute afterward which of the following would increase the demand for cheddar cheese.
1. discuss the pros and cons of central banks setting policy based on rules as opposed to setting policy based upon the
The subsequent cell-phone offer by Sprint is typical of Illustrate what one can get on a cell phone plan. Illustrate what is marginal cost.
Explain how difficulty will it be for the owner to plan for this new competitive threat.
Suppose that Ian and Mike are cottagers on opposite sides of a small lake. Ian values electricity at his cottage at $500 and Mike at $700, but in order to get electricity for their properties a trunk line costing $1000 must be built. If they are unab..
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