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If the inflation rate is 6% per year and a person wants to earn a true (real) interest rate of 10% per year, determine the number of “then-current” dollars he has to receive 10 years from now if the present investment is $10,000.
Your text, on page 629, lists three arguments for trade restrictions. Since economists do not favor trade restrictions, and this is a course in Managerial Economics, make the case as an economist against trade restrictions for these three items. Are ..
Examples of Variable Cost are. Salvage value is always included in the B/C calculation as:
If the price of labor is constant and a firm experiences diminishing marginal product, then its. When a bank or Bank like institution borrows from individuals or firms with excess funds and lends it to those who need funds it is:
In 1998, the Syndicated Bank Loan market (defined as loans having more than two bank lenders) was a vast and cheap source of debt financing for U.S. corporations. Over the same time period, in a related lending market, asset-backed commercial paper, ..
Transparency International, an antibribery advocacy group, issues an annual ranking of countries based on how widespread corruption is around the world. Fast growing countries such as China and India rank highly in terms of being corrupt. Using the v..
How does the employer mandate help eliminate the problem of adverse selection? Would a single-payer plan, in which everybody is insured through the government, further reduce the problem of adverse selection?
Another student advocates the forced break-up of large firms, such as Microsoft and AT&T, on the grounds that they have a lot of monopoly power, which they use to charge inefficiently high prices. According to Schumpeter, would breaking apart these g..
Three stores have a problem with theft, and security is a public good. Let’s use S to stand for the number of person-hours of security patrols per week. The marginal benefit of security patrols to each of the stores is given by the formula MB = 100 –..
The Camera Shop sells two popular models of digital cameras. The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are calle..
Suppose that in year 2008, the money supply is $400 billion, nominal GDP is 9 trillion, and real GDP is $4 trillion. Illustrate what is the price level. What is the velocity of money.
What constraints does the consumer who follows Biblical principles have on his consumption that a non-Bible believing consumer would not have?
Allison lives and banks in Texas. The reserve requirement is 20%. If Allison buys government bonds from the Federal Reserve for $1,000,000, will the money supply likely rise, fall, or not change? calculate the maximum change in the money supply from ..
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