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Debbie McAdams paid 8% interest on a $12,500 loan balance. Jan Burke paid $5,000 interest on a $62,500 loan base on 1 year (a) what was the amount of interest paid by Debbie?($1,000) (b) What was the interest rate paid by Jan? (8%) (c) Debbie and Jan are both in the 28th tax bracket. Since the interest is deductible, how much would Debbie and Jan each save in taxes? ($1,000)
What are the determinants of demand? What happens to the demand curve when any of these determinants change? Distinguish between a change in demand and a movement along a fixed demand curve, noting the cause(s) of each.
Beatriz enjoys writing and uses a large amount of paper. Currently, paper costs 2 cents per sheet. The formula for her demand curve is S = 52500 – 5000PS, where PS is the price of and S is the number of sheets purchased. The governor of her state pro..
Elucidate using a diagram the substitution also income effect which would result from a change in the price of a normal good.
What are the elements of negligence? What kind of damages are available under a negligence claim?
Robert’s New Way Vacuum Cleaner Company is a newly started small business that produces vacuum cleaners and belongs to a monopolistically competitive market. What are the profit-maximizing price and output levels? Explain them and calculate algebraic..
You are borrowing money to buy your first house that costs $250,000. You go to the first bank you see, Big Attitude Bank, and they are charging 5% interest. After taking this class, you decide to shop around and find a bank called Super Cheap, that i..
The market demand curve is Q = 38 P. There are two Örms: Örm 1 and Örm 2. One Örm has MC = 2 and the other MC = 5. They choose outputs simultaneously (the Cournot model). (a) Find an equation for 1ís reaction curve. (b) Find an equation for 2ís react..
In 2013, the furniture store PB produced 13 mahogany desks. One of them is sold to Jeanine for $3,349, later that same year Jeanine sold the desk to Pamela for $1,919. The remaining desks were not sold to anyone that year and stay in PB's inventory a..
Suppose Larry, More, and Curly are bidding in an auction for a mint-condition video of Charlie Chaplin's first movie. Each has in mind a maximum amount that he will bid.
If the economy is operating at a point less than full employment (as it is now), what would we want to see happen to GDP? For right now, let's just look at the C (consumption) component of our GDP equation. What would we want to see happen to consume..
Official intervention in the foreign exchange market does appear to be a useful policy when overshoots take place in fragile circumstances.What is an overhsoot? Explain the exact form of this official intervention to counteract a specific overshoot. ..
The U.S. continues to experience a relatively high level of unemployment in its workforce. When analyzing a two-good production possibilities curve (PPC), where would you expect to find a point that reflects this unemployment?
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