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If the price elasticity of demand for used cars priced between $4,000 and $6,000 is -1.2 (using the mid-point method), what will be the percent change in quantity demanded when the price of a used car falls from $6,000 to $4,000?
Outward Shift in the demand for capital occurs in an economic boom when increased construction of plants, buildings and other capital-intensive business activities requires huge outlays of investment. In this scenario, interest rates tend to rise alo..
Your friend tells you that in her country it is common to pay bribes to gain favor with important people Comment on both positions from a relativistic ethics point of view What do you believe and why?
How will globalization impact our economy in both short run and the long run? State your arguments "for" and "against" globalization and finally summarize your view on globalization.
You have $1,000, which you can invest in a risk-free investment, earning 2% with certainty. Alternatively, you can invest in a project that has a 30% chance of losing $500, and a 70% chance of gaining $400. What is your expected wealth with each inve..
Consider the Great Recession of 2007-2009, explain what you would expect to observe in the labor market during the recession and then explain what you would expect to observe in the labor market five years later. Questions to consider when formulatin..
Suppose the velocity of money is constant at 5 transactions per year, the price level for this year is $1, and real GDP this year is $8,000,000. Suppose the economy's output of goods and services rises by 5% each year. What will nominal GDP be equal ..
What are the phases of business cycle? What happens during prosperity? What happens during contraction phase? What is the difference between recession and depression?
Two firms that produce an identical product are located at each end of a street of length 10. There are consumers uniformly distributed along this street who value the product at V = 50 and desire at most one unit of the product. What are the optimal..
The desire to maximize profits can work against racial and other types of discrimination. To see this, consider two equally productive accountants named Ted and Jared. Ted is black, and Jared is white. Both can complete 10 audits per month. If the fi..
The discussion on price ceiling supposed that the medical industry faces increasing marginal costs of production. Suppose a for profit, monopolistic hospital is experiencing economies of scale (ie a downward sloping average and marinal cost curve) in..
Suppose the current price of gasoline at the pump is $1 per gallon and that 1 million gallons are sold per month. A politician proposes to add a 10¢ tax to the price of a gallon of gasoline.
For a company whose target capital structure calls for 50% debt and 50% common equity, which of the following statements is CORRECT?
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