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How would you evaluate economic aspects that apply to decision making?
Sam Musso is planning to retire in 20 years. He can deposit money at 8% compounded quarterly. What deposit must he make at the end of each quarter until he retires so that he can make a withdrawal of $45,000 semiannually over five years after his ret..
What is a standardized budget deficit/surplus? How is it different from actual budget deficit/surplus? How is budget deficit/surplus related to public debt? What is the approximate percentage of US public debt that is owned by foreigners? What is the..
A community has four residents. The table shows the number of dental visits each resident will have. Calculate the total quantity demanded at each price. Then graph the relation between price and total quantity, with total quantity on the horizontal ..
What is the non-accelerating rate of inflation? How does it relate to the natural rate of unemployment? What role do expectations play in determining the rate of inflation?
What is the most conventional stance regarding the use of absolute value in the definition of Own-price elasticity-Cross-price elasticity
What is the difference between a Pareto improving change and a Potentially Pareto Improving change?
Suppose that the cost function of a firm is C(q) = 10 + 3q + 0.1q 2 and that it operates under perfect competition. If p = 4, find the optimal quantity, the costs, the revenue and the profits. Find the price at which the firm makes zero profits, that..
If the Fed sells $20 million worth of government bonds to the public (open market sale), will the lending capacity on the banking system increase or decrease? By how much will the money supply change? Assume the required reserve ratio to be 0.1.
In December 2014, the international price of oil has dropped to almost half of its level in June 2014. What do you think the expected impact of this drop on the US economy in the short run and in the long run using the AD and AS model? Hint: Think of..
Your son is graduating from high school and is about to enter the work force. He has developed a strong curiosity about our economic system and how it works
If the investor wants to receive 8% interest, compounded semiannually, how much would he or she be willing to pay for the bond?
Discuss why a firm may decide to continue producing a good even if its price may be less than the average total cost.
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