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An insurable risk for a business would be one that is due to: A. Changes in consumer tastes B. Changes in government policies C. Economic recession D. Accidents to employees Comment
During the Great Recession, like any other economic downturns, as unemployment rises, aggregate income declines causing a major decline in tax collections.
This discussion will require some thought. Reread the section on Nash Equilibrium. In all of the market structures except oligopoly, firms identified the level of output at which MR = MC, produced that level of output, and charged a price dictated by..
According to the lectures in class, although consumption spending is about 70% of the total spending in the US economy (C=70%, I=15%, G=15%) its effect is stronger than 70% on the economy why?
What is the relationship between price and marginal utility?
Hong Kong dollar, and the one-year forward exchange rate is 9 yen per dollar. Determine whether or not there is an arbitrage opportunity and, if possible.
The definition of a price maker is a firm with some power to set the price because the demand curve for its output slopes downward which in effect means those firms with a downward sloping demand curve have some market power.
Suppose a country has had a high and relatively stable inflation rate for a long time. How might this affect the costs and benefits of inflation reduction?
Broadway Inc. is considering a new musical. The initial investment required is $880,000. Every year, the free cash flow from the project is expected to be $80,000, continuing forever. What is the true NPV of the project if the company can abandon th..
Undergraduate student (age 22) gets a job that pays $49800 per year. Planning to retire at age 67, she decides to save 10% of her current salary each year. If she is able to get an average ROI of 5.8% per year, how much will she have saved when she r..
Draw the PPFs for A and B when they work for 4 hours. What if the OC of shirt for A? What is the OC of shirt for B? What is the OC of cake for B? Who will export shirts? Why?
Elucidate why is private property also protection of property rights, so critical to the success of the marketplace system.
A stranger approaches you in the hospital parking lot and identifies himself as a lawyer who would like to help people and he would like to give you some of his business cards to hand out to patients who are not happy with their medical treatment; he..
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