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Compensating differentials explain in part:
A. how unions derive their bargaining power;
B why some people choose to aquire more human capital thatn others;
C. how the income and substitution effects interact;
D. why there is income inequality
How responsive do you think consumers will be to the price change when these fluctuations occur due to changes in supply? Why? Use the various determinants of elasticity to explain your answer. How does the price elasticity of demand for gasoline imp..
Apples are bought and sold in a competitive market. Use a graph for the apple market and a graph for an individual firm to demonstrate that firms are earning economic profits. Explain, without using a diagram, whether the situation in (a) can be main..
What could the FED ( Federal reserve system) do in 2002-2003 in order to bring the economy back to full-employment ? What did the FED actually do ? Explain in detail
You have borrowed $25,000 at an interest rate of 16%. Equal payments will be made over a three-year period. (The first payment will be made at the end of the the first year). What will be the annual payment?
A machine costing $35,000 to buy and $4,000 per year to operate will save mainly labor expenses in packaging over six years. The anticipated salvage value of the machine at the end of the six years is $5,000. To receive a 12% return on investment (ra..
A rightward shift of the long-run aggregate supply curve is caused by
Florida Citrus Inc. (FCI) produces and sells a highly popular sports drink in the North American market. For many years, it has sold in the Asian market through a Tokyo-based importer. The contract with the importer is up for renewal, and FCI decides..
The recent immigration of labor into the United States from Mexico has led to increased calls for new restrictions on this movement of labor (including greater enforcement of existing restrictions). What would be the costs and benefits to the United ..
Consider a two-period economy with a single commodity (say leisure): X_1 is the consumption of leisure in period 1, and X_2 is the consumption of leisure in period 2. When Peter evaluates consumption streams, he cares only about the best time in his ..
An investor is considering the construction of a new marina on the Detroit river at a cost of $68m. M&O costs will average $80,000 per year for the first five years, and rise to $100,000 per year thereafter. A major overhaul costing $12m will be requ..
What are the government's fiscal policy options for ending a severe recession? What are the short term and long term consequences of using fiscal policy for ending a server recession? What are the Monetary policy tools the Federal Reserve Board uses...
A manufacturing company leases a machine for $31,000 per year. Each unit produced costs $36 in labor and $65 in materials. To break even, 21,000 units must be sold. What is the price of the product?
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