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The ABC Company has contracted to make the following payments; $10,000 immediately; $1,000 at the end of year 1; $1,500 at the end of year 2; $2,000 at the end of year 3; $2,500 at the end of year 4; and $3,000 at the end of year 5. What fixed amount of money should the company plan to set aside each year, at 8% interest per year, compounded annually, in order to make the above payments? Ans: $4,427.82.
Suppose if 100$ million in excess reserves are made available to banking system, by how much can the banking system increase the money supply?
If the minimum salaries is set above the equilibrium salary, does this make a shortage or a surplus of labor, or does it create a lower wage rate
Find out the utility with full insurance for the treatment also how much would the individual be willing to pay to obtain such insurance than the fair premium.
Differentiate and contrast public goods, private goods, common resources, also natural monopolies with Brazil as well as the United States with bio fuel.
Suppose perfect competition. Yoland is a small nation that takes world value of corn as given. Its domestic supply and demand for corn is given by the following;
Does the structure of global economy permit poor nations to catch up with rich ones? Is the Solow model a useful framework for understanding whether poor nations tend to catch up with rich ones?
Illustrate what did classical economists assume about the flexibility. What disagreements did Keynes have with classical economists.
Suppose two identical firms produce widgets and they are the only firms in the market. Find the Cournot-Nash equilibrium.
Between your answers to parts b and c, which prices/capacity are best applied from a social welfare perspective? Why?
Determine which is true of leakages and injections in the circular flow, the consumer price index measures changes in
Suppose Q is the quantity demanded for medical care services. The linear industry demand function takes the form.
Elucidate why, at one point in time, a Keynesian approach to managing the macro-economy might be appropriate while, at another point in time, a classical approach might be more likely to produce a superior outcome.
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