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You have just taken a job at a bank in the loans department. Your bank is worried about the current economic climate and the potential to limit the real rate of interest they will earn on new loans. Turning to you, the head of the department asks you to determine the proper nominal rate of interest to ensure a 5% real rate of interest. You say that you have to know what inflation will be. You are told that the current inflation rate is 1%.
You are interviewing three candidates for one sales job position. On the basis of your experience and insight, you believe Jane can sell 600 units a day, Joe can sell 450 units a day, and Joan can sell 400 units a day. The daily salary each person is..
Max Whitley, manager of Whitley Construction, builds new homes in a booming community in the Midwest. Although the sales have slowed down because of a national recession, it now looks as if the recession is about to end. Max wants to be ready with..
Illustrate what specific actions could you take in the future when choosing stock investments to reduce risk and increase the reward in your portfolio.
How would you account for the fact that although some observers claim competition is declining in the American economy, every business firm insists that it faces strenuous competition? Explain.
Assume that the potato chip industry in the Northwest in 2007 was competitively structured and in long-run competitive equilibrium; firms were earning a normal rate of return, in 2008 two smart lawyers quietly bought up all the firms
Why do companies cut production when they find that their unplanned inventory investment is greater than zero? If they didn’t t cut production, what effect would this have on their profits? Why?
Explain why a monopoly that is perfectly able to discriminate between its customers and charge them the individual price it wants is Pareto-efficient, unlike a monopoly that can only charge a single price to consumers with different reservation pr..
Create a chart that compares and contrasts the theories including the main theorists, a selection of countries using each model, and a summary of where the economic power lies (i.e., people, market, government).
As new substitutes for office productivity software are developed, the demand for workers in office productivity software production should
If the transaction is included, determine which component of final expenditure it represents. If the transaction is excluded, explain why - Calculate nominal GDP in years one and two and calculate real GDP in years one and two assuming that year o..
kywalker Farms supplies water to the town of Mos Eisley (they are \the water company", i.e. a monopoly supplier). Given their infrastructure of pipes, treatment centers, etc, the marginal cost of supplying one gallon of water is only $.50 (and is..
In 2001 the government of Anchovy collected receipts of $100 billion and had expenditures of $125 billion. Its GDP was $400 billion. The government's deficit was what percent of GDP in 2001?
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