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You have just entered an MBA program and have decided to pay for your living expenses using a credit card that has no minimum monthly payment. You intend to charge $1000 per month on the card for the next 21 months. The card carries a monthly interest rate of 1%. How much money will you owe on the card 22 months from now, when you receive your first statement post-graduation?
Suppose government were to provide free daycare for children and assume this has no effect on the real wage w, taxes T, and dividend income π. Determine effect of the daycare program on consumption, leisure and hours worked by the consumer.
A recent editorial advocated a cut in the payroll tax, with the argument that such a tax cut would "stimulate employment, since employers shoulder half the burden of the tax." Use a graph to illustrate circumstances under which this would and woul..
Assume the demand and supply for milk are described through the following equations: QD = 600 - 100P; QS = -150 + 150P, where P is price in dollars,
What is the expected value of the lottery? What is the variance of the outcomes?
Income at a major cellular telephone manufacturer when it decreased the average selling price of its phones.
Explain how the price elasticity of demand varies as we move from left to right along a linear demand curve. At which part of the curve is demand unit elastic Where is it elastic Where is it inelastic
What is the composition of GDP by percentage, what is the GDP per capita and If government purchases go up in the short run, what happens to GDP?
You are negotiating a 5 year contract to supply engineering services for your company and the rates proposed for each new contract year are indexed to US CPI. List five problems you may have with this proposal and rank order them from Highest to l..
Entry of firms in a monopolistically competitive industry is characterized by two "external" effects. What are these effects and how do they affect a monopolistically competitive firm. How are consumers and incumbent firms influenced by these exte..
A private college adds a small café to its building to cater to the needs of its own students. The total cost of the facilities for the café is $100,000. After a year of operations the college determines that operating the café is interfering with..
A food chain charges higher prices for its products in poorer neighborhoods compared to the ones in affluent communities. Give your opinion on why this occurs. Provide support for your response.
Assume if the inflation rate is 5percent is this still acceptable. Provide quantitative justification for your answer.
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