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suppose you go to a bank, intending to buy a certificate of deposit with your savings. Explain why you would not offer a loan to the next individual who applies for a car loan at your local bank at a higher interest rate than the bank pays on certificates of deposit.
Why do national income accountants compare market value of total outputs in various years rather than actual physical volumes of production.
What should the jackpot be before the expected payoff is worth your $1.00 bet. Assume that the state takes 60% of the jackpot in taxes, that no one else is a winner, and that you are risk -neutral.
Illustrate what is the quantity of economic investment that has resulted from BBQ's actions
Why is the money multiplier considered to be a potential multiplier rather than an indication of exactly how much multiplication should be expected?
Since education yields private market returns, which are fully captured by the person who makes the investment, the market will provide the optimal level of education and the govern- ment should not intervene.
The down payment is paid immediately, and the monthly payments are due at the end of each month. The effective annual interest rate Helen is paying is most nearly?
Joe is an empire builder". That is, his goal is to produce and sell as much as possible. Show that Joe's output is a decreasing function of all input prices.
Show how the answer depends on the shape as well as location of the supply as well as demand curves.
Assume you are a producer and seller of wine. Elucidate whether the following events would affect the demand or supply of wine and the price you will receive.
Assume capital depreciates at 10 percent a year. Economy A has 1.000 units of capital while Economy B has 2,000 units of capital. Illustrate what must Gross Investments be in Each Economy to keep capital stocks Constant.
Supposes airline industry consisted of only two firms: American and Texas Air Corp. Let two firms have identical cost function, C(q) = 40q. Assume that demand curve for industry is given by P=100-Q and that each firm expects or to behave as a Cou..
In long run, what would you expect to happen to the price of steelin U.S. and Germany. What would be the price differential.
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