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Suppose you purchase a $5,000 bond that pays 7 percent interest annually and matures in five years. if the inflation rate in recent years has been steady at 3 percent annually, what is the estimated real rate of interest?
Two countries will have zero incentive to trade if their production possibilities curves are parallel straight lines because One country has a comparative advantage in the production of both goods, thus providing that country with no incentive for tr..
Determine the market rate of substitution. (b) In your graph show the budget set. (c) If PX doubles, what happens to the budget constraint. Show this effect in your graph. (d) What is the meaning of the slope of the two budget constraints?
What happens to hours of work when non-labor income decreases? Does such a non-labor income change generate a substitution effect? Why might we expect welfare programs create work disincentives? What happens to the probability that a particular perso..
The size of the market will help determine which of the following factors:
q. many small boats are made of fiberglass which is derived from crude oil. assume the cost of oil risesa. using
Illustrate how much consumer surplus does he receive. What is the highest price you can charge for the "all you can eat" special and still attract customers.
Suppose a gardener produces both tomatoes and squash in his garden. If he must give 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is a) 0.62 bushels of squash b) 1.6 bushels of squash c) 3 bushels..
During the construction of a highway bypass, earthmoving equipment costing $40,000 was purchased for use in transporting fill from the borrow pit. At the end of the 4 year project, the equipment will be sold for $20,000. The schedule for moving fill ..
Briefly elucidate how three aspects of the demographic transition model account for europes tranfomation into a destination region for migrants from north africa between 1960 and 2000.
Illustrate what alternative decisions might you be able to make in the long run. Explain" "Clearly explain the factors to consider as your "fixed factor".
First Printing has contracts with legal firms in San Francisco to copy their court documents. Daily demand is almost constant at 8,500 pages of documents. The lead time for paper delivery is normally distributed with a mean of 2 days and a standard d..
If the price of one good is four time the price of the other also the price of both double, Illustrate what effect does it have on the set of affordable bundles
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