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Q1. a. Why does an exporter face a foreign exchange risk? How can the exporter hedge its foreign exchange risk?
b. What do you assume the interest on payday loans is too high or it is just right? Should Christians charge poor people interest on loans?
Q2. A manufacture procedure using 2 inputs, labor as well as capital, can be written as Q = 5LK where Q characterize output per day (tons). The unit costs of participation are $150 for labor (L) and $1,000 for capital (K). Conclude least cost amalgamation of L and K when output is produced at the rate of 1,000 tons per day. Conclude the necessary outlay for 1,000 tons / day?
A county is considering using a piece of park land for one of two alternative recreation projects. Project S would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years.
Assuming no other changes, if balances in money market deposit accounts increase by $50 billion and small-denominated time deposits decrease by $50 billion.
School tries to discourage Twinkie consumption by raising the price to $.40, by how much will Matt's mother have to increase his lunch allowance to provide him.
DHL prides itself on having its own staff of more than 300,000 people spread across the globe, instead of relying on local agents.
Which of the government policies below is not likely to encourage per capita economic growth.
The 2 firms form a cartel & arrange to split total industry profits equally. Under this cartel arrangement, they will maximize joint profits.
What is the confidence interval for the proportion of households represented at a town meeting. Survey of households in a small town showed that in 850 of 1,200 sampled households.
The US government could not pass its annual budget. As a result, the US government has partially shut-down: roughly about 800000 federal employees of non-essential services are out of work
If income rises from 1000 to 1800 and consumption rises from 1100 to 1700 the marginal propensity to save.
Suppose a firm pollutes a stream that has a recreational value only when pollution is below a certain level. If transaction costs are low.
If each test provides$6 net marginal revenue before labor and capital costs, is expansion advisable? Show all your work and explain your answer well.
Provide an appropriately labeled boxplot of the data below and use a randomization test to examine whether the null hypothesis holds that male and female turtles have the same mean serum cholesterol.
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