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Q1. BMME5103 2 forgone entrepreneurial income to be $10,000 a year. She used $500,000 in savings that earned 5 percent interest annually to finance the new business. In the first year, the firm earned revenue of $1,500,000. The costs for rent, supplies, and employees' salaries were $1,100,000. What was the accounting profit for the new business? What was the economic profit (or loss)? Explain your calculations for both questions.
Q2. As the economy slipped into recession in 1980 and 1981, the Fed was under enormous pressure to adopt an expansionary monetary policy. Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation unemployment cycle suggest about how the macroeconomic history of the 1980s might have been changed?
The largest loan that the bank can make on the basis of the new deposit. If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit.
The Australian government administers two programs that affect the market for cigarettes
The biggest difference between Microsoft and software retailers is the market structure in which they operate.
Disposable personal income equals personal income and two factors are the keys to determining labour productivity
If one draws MC curves pre and post innovation as well as the Marginal Revenue line for a monopoly and the MR in a competitive situation.
What are the components of aggregate expenditure. What determines the slope of the aggregate expenditure line.
Jane wants to buy a beautiful doll as a gift for her sister's birthday. What is the advantage to society to correct the externality?
Brenda Johnson has used a preprinted form that she got from the internet to create her will.
Bud Owen operates Bud's Package Store in a small college town. Bud sells six packs for off-premises consumption.
Each firm can monitor the other's price very closely and can respond instantly
Who has the comparative advantage in what product. Once they specialize, how much does output increase. What are the terms of trade if the United States trades 1 can of soda for 5 units of clothing.
Calculate price, quantity and social surplus for the initial state and each policy.
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