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An enginnering student has just finished the freshman year andhas received an offer of $20,000 per year in a full-time job, withprospects of salary increasing 3% per year until retirement after33 years. If employement is taken, the student will likely notfinish his engineering degree. Tuition and other costs are$10,000next year, increasing at 7% per year. A starting salary of$45,000 could be expected upon graduation from the four yearprogram. Salary increases in engineering job are estimated at 4%per year until retirement after 30 years.
On the basis of economics alone, should the student take thejob now or finish college? Analyze as two mutually exclusivealternatives and solve with present worth analisis. interest rateis 7%.
Suppose that the residents of Veggie land spend all of their income on cauliflower, broccoli, and carrots. In 1998 they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $75, and 500 carrots for $50. In 1999 they buy 75 heads of cauli..
Explain how each of the following actions will affect the level of planned investment spending and unplanned inventory investment. Assume the economy is initially in income–expenditure equilibrium. There is a reduce in the expected growth rate of rea..
What is Schumpeter's view of the role of the entrepreneur in the economy? How is Schumpeter's view of competition in the article different from the price competition you learned in your microeconomics course?
Use an IS-LM diagram to illustrate Krugman's contention that fiscal policy is more effective as a macroeconomic policy tool when compared to monetary policy, given that the economy is in a liquidity trap.
Now let's say that the central bank of Columbia decides to do $300 in easy open market operations with Bank A only . After this open market operation is complete, calculate the maximum amount of money that Bank A can create on its own.
q1. at a university faculty meeting in 2000 a proposal was made to increase the housing benefits for new faculty to
Many economists specializing in "growth theory" contend that developing countries may achieve strong economic growth by increasing the amount of capital and labor available for production, but that this type of growth strategy is incapable of support..
Why do most countries have some protectionist trade barriers? Identify two types of protectionist trade barriers. Which is usually better for most countries, protectionist trade policies or free trade? Explain.
You have been hired to manage a small manufacturing facility whose cost and production data.
A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/20,000, making the marginal revenue MR=1.70-Q/10,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. So, the total cost is..
What can be said about the benefits and problems of each dimension (economic, cultural, political and environmental) of globalization? Is globalization a positive force overall?
Two friends who are addicted to Starbuck’s iced coffee were overheard talking. John said “No matter what the price of iced coffee is or will be, I will buy 4 cups a day.” His friend, Peter said “if Starbucks raises the price of a tall iced coffee abo..
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