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Enrollment at City University is increasing 3% per year, its cost per credit hour is increasing 8% per year, and state funds are decreasing by 4% per year. State funds currently pay half of the costs for City U., while tuition pays the rest. What annual increase in tuition is required? Assume inflation is 5% and other rates are nominal.
What is the present worth of a series of equal payments of $5000 made every two years for the following time frames? The nominal interest rate is 8%. For a period of 40 years? In perpetuity?
Why does the U.S. Stock Market often experience large swings following the monthly release of the monthly unemployment report from the U.S. Bureau of Labor
The concept of balance of power is fundamental in international relations. What does it mean? How meaningful can it be at the beginning of the 21st century, given the impact of globalization and modern warfare in which one's opponents may not be atta..
Consider our model of three-period – lived individuals of this chapter. Suppose the two-period real rate of return on capital is X = 1. 44, the rate of population growth is n = 1. 1, and the rate of fiat money creation is z = 1. 2. Find the following..
Suppose Jimmy says that he is willing to give up three apples in exchange for one banana, or give up one banana in exchange for three apples. Either trade is alright with him. Suppose that apples cost $2 and bananas cost $1. What trade, if any, would..
Why is technology such an important part of the labor market? Do you think technology makes workers more or less productive and how does it relate to their wages?
If going rate for developing a roll of film is $8.50, is industry in long-run equilibrium. If not, find price associated with long-run equilibrium.
What can be accomplished about the impact of transportation costs on the price of the traded product in each trading nation.
Given the current condition of the US economy, do you think US policy makers would prefer to see the $ rise in value, decline in value or stay at its current value? Discuss the advantages and disadvantages to the US economy at this time of a stronger..
An industry consists of a dominant firm with costs C(Qd)=2Qd and 4 identical fringe firms, each with costs c(q)=1+q^2. Market demand is Q=24-p. Derive the residual demand for the dominant firm. Sketch the demand, supply of the fringe, and the rsidual..
Which of the following is a characteristic of a monopoly?
You inherit $10K when you are 20. What is this worth when you are ready to retire at 65? Assume that the money can be invested at 7%, which is your interest
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