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1. Distinguish between a trade deficit and a current account deficit.
2. A developing country operates a trade deficit because of large imports of capital equipment. Explain how this country might sustain this deficit over time.
A consumer purchases two goods, food (F) and clothing (C). Her utility function is U(F,C) = FC + C; thus, MUf = C and MUc = F + 1. The price of food is Pf , the price of clothing is Pc , and the income of the consumer is I.
the production function fl 6l23. suppose that the cost per unit of labor is 8 and the price of output is 4 how many
1. Income is $2.00, the price of soda is $0.25, and the price of chips is $0.50. Construct Adam's budget line. 2. What is the utility maximizing combination of soda and chips Indicate this combination on the budget line.
If the monopolist is able to charge different prices to each type of consumer, what price will she charge to type B consumers?
Kristin Earhardt is a 26-year-old management trainee at a large chemical company. She is single and has no plans for marriage. Her annual salary is $34, 000 (placing her in the 1 5% tax bracket), and her monthly expenditures come to approximately ..
If the State University basketball team continues to do very well in future years, what is likely to happen to the price elasticity of supply of tickets to its games? Briefly explain.
Joe has never trusted banks and always kept his money in cash. Joe pulls out his money jar, discovers that it has $20,000 in it, and decides it is unsafe to keep that much cash. Joe stops at the Local National Bank the following day, opens a check..
Harvey wanted to start his own business so he quit his job at Winona State University where he earned $98,000 a year. He figured his entrepreneurial talent to be worth $15,000 a year.
What analysis could they use to compare the performance of the two groups? (The results showed that "heavy users displayed significantly greater impairment than light users on attentional/executive functions.")
Home, Sweet Home. Suppose Ms. Profligate and Mr. Discipline both purchase identical $185,000 homes in Marietta, GA on January 1, 2012. They both have good credit and qualify for a loan with no down payment and 4.8% financing.
Assume velocity is constant, real income is constant at Y ¯= 200 and that the demand for real money balances is given by: L(i, Y ) =Y/√i (9) (a) If expected inflation is zero, the nominal interest rateis i = 0.25 and the price level..
The four fundamental factors that affect the supply of and demand for investment capital, and hence interest rates, are productive opportunities, time preferences for consumption, risk, and inflation.
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