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Suppose a firm had two methods to assemble a new smartphone. The first method utilizes 2 hours of labor and 4 units of capital, while the second method uses 4 hours of labor and 1 unit of capital. Under which conditions would the firm want to use the fist method? (Be specific)
An outcome that can result from either a price ceiling or a price floor is:
Sam bought a car for $40,000 at “0” percent for 60 months. The financing was done through the financial arm of the car company. If he had paid cash for the car he could have gotten the car for $34,000. Determine the interest rate that he is paying on..
Which of the following is often not a disadvantage of decentralization?
For each of the following transactions identify by how much M1 and M2 change. (a) Your grandmother gives you a check for $250 as a present for your birthday. You deposit the check into your checking account. You then withdraw $50 as cash and transfer..
What type of economic flow would be illustrated b the purchase of a Mexican candy-making factory by a US company.
What is the current household saving rate in the United States? What do you think of this saving rate? Too high or low?
The demand curve for haircuts at Terry Bernard's Hair Design is: Where Q is the number of cuts per week and P is the price of a haircut. Terry is considering raising her price above the current price of $15. Terry is unwilling to raise price if the p..
Arian is about to borrow $3,903.71 from his uncle. He has an option to repay the loan at the end of year 6 with 9.73% simple interest per year or with 6.77% interest per year, compounded annually. What is the difference of the total interest paid ove..
Explain how much is saved at equilibrium. If savings fell by $200 at every level of GDP, illustrate what would be equilibrium level of income.
Decide on the next steps based on the events that took place. What makes this next step the best decision?
Illustrate what fiscal and monetary policies would you recommend in order to close a recessionary gap. Would you recommend what expansionary polices.
What considerations regarding Market Structure are important in your opinion? Is competition really all that different when you get down to basics? Can you think of a theoretical framework that may be useful in considering this issue?
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