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An MBA student has proposed the following demand equation for good Y. QdY = a + b PY + c M where: QdY = quantity demanded of good Y in millions of tons per year PY = Price of good Y in dollars per ton M = Average consumer income in thousands of dollars i. What sign should this student expect a, b, and c to have? Explain
It would be reasonable for a typical purely competitive wheat farmer to lower his price per bushel in order to sell more. The higher sales level will cause average fixed cost to decrease and this will result in more profit for the individual farmer. ..
An investment bank is planning to interview 10 job candidates, randomly chosen from the applicant pool. Individuals differ in their abilities to put together deals and perform other functions that are part of an investment banker’s job.
In 2002, one dollar bought 120 yen. In 2006, it bought about 100 yen. what was the value of the yen in 2002 and 2006? by what percentage had the yen risen between 2002 and 2006?
Suppose that the salary for a recent industrial engineering graduate is expected to increase by 12% per year from a base of $52,000 over the next five years. If the interest rate is taken to be 10% during the period, the present worth of the earnings..
Suppose a private closed economy has an MPC of .8 and a current equilibrium GDP of $7400 billion. What is the multiplier in this economy? Now suppose the economy opens up trade with the rest of the world and experiences net exports of $20 billion. Wh..
You are the manager of a large crude-oil refinery. As part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. The replacement and downtime cost ..
The aggregate demand curve is. Consumption is primarily determined by. When the saving function is below the disposable income line. The negative relationship between the aggregate price level and aggregate output demanded gives the aggregate demand ..
Suppose a government has no debt and a balanced budget. Suddenly it decides to spend $10 billion while raising only $8 billion worth of taxes. What will be the government's deficit? If the government finances the deficit by issuing bonds, what amount..
Other things equal, what effect will each of the following have on the equilibrium price level and the level of real output?
What is On the Bleeding Edge? Think about the way social media impacts your life as far as product marketing – online coupons, Groupons, email ads etc. What is on the bleeding edge of technology and how can your product use this idea to increase sale..
You are in charge of making recommendations based on economic forecasts to upper management of your firm, which produces widgets, and employs 2,500 workers. what recommendations would you make to improve performance and promote better decision making..
What might you expect in the way of cultural differences from a business point of view if you were to go to France, Saudi Arabia, Brazil or China? What do you think people from France, Saudi Arabia, Brazil or China might expect from American culture.
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