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Consider the following scenario to understand the relationship between marginal and average values. Suppose Yakov is a professional basketball player and his game log for free throws can be summarized in the following table. Fill in the columns with Yakov's free-throw percentage for each game and his overall free-throw average after each game. Game Result Total Game Free-Throw Percentage Average Free-Throw Percentage 1 6/8 6/8 75 75 2 2/8 8/16 3 2/4 10/20 4 8/10 18/30 5 8/10 26/40
The financial crisis that occurred 2008-2010 amounted to a increased debt ratio in many countries. Write the debt ratio formula. Discuss in detail what factors that tend to increase or decrease the debt ratio under a financial crisis.
Show whether or not the above production function exhibits diminishing marginal productivity of labor. Determine the nature of the Return to Scale as exhibited by the above production function.
According to the rule of 70 and 72, a 10% annual increase in real GDP would lead to doubling of real gdp in how many years? According to the future value calculation: an individual and his wife want to retire at 62 on his birthday. Greg just celebrat..
Illustrate what percentage does equilibrium cost level differ from its initial value if output increases to Y = 106 (and r remains at 0.10).
Between 1970 and 1976, average inflation rate of Country X was about 35 percent per year. With that rate of inflation, prices would double about every ________ using the rule of 70.
As the price of gasoline ranges from $3.00 to over $4.00 a gallon in a year, the amount of gasoline bought remains about the same; does this mean that gasoline is an exception to the law of demand or is there some better explanation?
Describe and discuss your price elasticities for such products and discuss the movement of your demand for such a good when the price of that good rises. Share with your classmates whether your demand for the selected good is elastic, unit elastic, o..
Classify the following Wall Street Journal articles as involving macroeconomic or microeconomic issues based on their titles:
Suppose that the nominal interest rate on three-month Treasury bills is 8 percent in the U.S. and 6 percent in the U.K., and the rate of inflation is 10 percent in the U.S. and 4 percent in the U.K. a. What is the real interest rate in each nation? b..
Your firm must decide whether or not to introduce a new product. If you introduce the new product, your rival will have to decide whether or not to clone the new product. If you don’t introduce the new product, you and your rival will earn $1 million..
For each of the following cases, explain the likely effects on demand/supply, use demand and supply analysis to show the effect on equilibrium interest rates (increase or decrease), other things being equal. Federal government borrows to finance budg..
The optimal capital structure is the mix of debt, equity, and preferred stock that minimizes the company's cost of preferred stock.
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