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Suppose an assistant professor of economics is earning a salary of $75,000 per year. One day she quits her job, sells $100,000 worth of bonds that had been earning 5 percent per year, and uses the funds to open a bookstore. At the end of the year, she shows an accounting profit of $90,000 on her income tax return. What is her economic profit?
Assume an economy with an aggregate production function of the form Y = 1.5K. If the nation’s population grows at 5%, the rate of depreciation is 3%, and the savings rate is 8%, what is the steady-state output per capita level?
A woman wishes to make a uniform deposit every three months to her savings account so that at the end of 10 years she will have $10,000 in the account. If the account earns 6% annual interest, compounded quarterly how much should she deposit each thr..
What are the pros and cons of the Economic Stimulus Bill (The American Recovery and reinvestment act of 2009). Provide your arguments and defence for a method to jump start the U.S. economy in a time of recession.
Suppose GDP is $15 trillion, taxes are $3 trillion, private saving is $2 trillion, and public saving is -$0.5 trillion. Assuming this economy is closed, calculate consumption, government purchases, national saving, and investment. Explain your answer..
The _____ statement can contain both a review of the evidence and an attack of the other side’s case.
Microsoft emerges to have a monopoly with over 90% of the personal Calculator operating market. Why then would it not be charging a monopoly cost.
Suppose that the long-run aggregate supply curve (potential output, Y is vertical at Y = $3,000 while the short-run aggregate supply curve is horizontal at P = 1.0 (and once again, P = 1.0 is the SRAS Curve, in other words). If the macro economy is i..
Which of the following best describes the aggregate demand and aggregate supply model?
Many conspiracy theories have been offered as explanations for the assassinations of the great leaders of the 1960s and still fascinate society today. Share some of those conspiracy theories. What contributes to the belief in conspiracy theories?
If the interest rate is 8%, determine if the new column should be purchased. Solve by both present worth and annual cash flow analysis methods.
What is economics? Why is economics considered a social science? What role does economics play in your personal and professional lives?
Determine the after-tax cash flows for this investment. make adjustment in the DDB depreciation charges if necessary in any year in light of the SV of $20k
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