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An industrial firm can purchase a special machine for $22,000. A down payment of $2,500 is required, and the balance can be paid in 5 equal year-end-installments at 14% interest on the unpaid balance. As an alternative the machine can be purchased for $19,000 in cash. If the firm's MARR is 20%, determine which alternative should be accepted. Use the present worth on incremental investment approach.
The original Cobb-Douglas function was given as Q = aLbLl-b. It was subsequently rewritten as Q = aLb1Kb2.
Economists believe that the current values of the deposit multiplier and the money multiplier are widely divergent. Why might these values differ at present? What (if anything) do you think must happen for them to converge once again?
q. 1. does the mincer model take unequal access to education into account? discuss the shortfalls of this model in that
q1. assuming the abc bank has excess reserves of 5000 it could prudently expand its loans by a maximum of?q2. the
Describe the difference between Economic contraction and Economic expansion
In which of the subsequent ways does government involve the consumption component of planned cumulative expenditures.
What other economic factors are affected when taxes are raised or lowered, and how are they affected. Should the government increase tax rates on everyone as a way to equalize incomes and wealth.
Suppose you are a manager at Bank of America and the Federal Reserve raises the required reserve ratio from 10 percent to 12 percent. What actions would you have to take? How would your actions and those of other bank manager’s end up affecting the m..
How is power distributed in the U.S. political system? How does the U.S. political system reflect the distribution of power? List and discuss six ways in which urban planning can be political in nature. With references.
Illustrate what is the relation between marginal benefit and marginal cost at this level of the control variable.
q1. why does a profit-maximizing firm hire workers up to the point where the wage equals the value of marginal product?
Small country Alpha exports lumber products obtained by cutting Alpha's forests. Cutting the forests creates negative external effects in Alpha.
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