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In year 1, Randy sells a parcel of land that he held as an investment for a number of years.
The land has a basis to Randy of $8,500. The buyer makes a $6,000 down payment in year 1 and will make a $7,000 payment in year 2 and a $7,000 payment in year 3. In addition, a reasonable rate of interest is charged on the year 2 and year 3 payments. How much income will Randy recognize in years 1, 2, and 3, assuming that he uses the installment method?
What is the result if Randy elects out of the installment method for this sale?
Jess and Larry are working on a project that requires them to spenda day together. Jess likes to smoke, and his marginal benefit fromone cigar a day is $20. The price of a cigar is $2. Larry dislikescigar smoke, and his marginal benefit from a smo..
Illustrate what marketing, pricing, distribution or other competitive advantages can firms exploit. What limits or constraints are on these firms.
In 1939, with the U.S. economy not yet fully recovered from the Great Depression, President Roosevelt proclaimed that Thanksgiving would fall a week earlier than usual so that the shopping period before Christmas would be longer.
Suppose that in small open economy the following describes investment demand, private saving, and government budget deficit.
There are many factors might change AD and AS, and equilibrium. Please evaluate the effect of following scenario on the AD curve, AS curve, and accordingly the effect on equilibrium price level and equilibrium GDP/output.
Elucidate factors would you consider before investing in the emerging stock market of a developing country.
Elucidate at what price also quantity will marginal revenue be zero. At what price and quantity will marginal revenue be maximized.
Suppose that in 1984 the total output in a single-good economy was 10,000 buckets of chicken and the price of each bucket of chicken was $10. In 2005 the price per bucket of chicken was $20 and 25,000 buckets were produced. Determine the GDP price..
How did Keynes challenge the classical conclusion about income and employment, especially as it referred to the three foundations of classical theory; Say's law, the abstinence theory of interest, and wage-price flexibility
The central bank of Country A takes no stabilizing-policy actions. After the short-run impacts of the adverse supply shock become apparent, the central bank of Country B increases the money supply to return the economy to full employment.
Give an example of a positive externality and of a negative externality. How does an externality affect the market outcome.
Allied Box offers mail order storage containers for fine china producers. The firm is low-cost provider of these boxes with fixed cost of $480,000 per year,
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