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Suppose you were appointed economic advisor to a less-developed nation in Africa. The nation seeks to encourage capital formation and wants to increase the rate of savings of its own residents as well as encourage foreigners to invest in their nation. What role would you assign to property taxes in this nation to achieve its objectives?
What is the annual percentage rate (apr) on a loan that charges interest of .75 percent per month? B. what is the effective annual rate (ear) on the loan described in (a)
Explain the impact of each of the following events on the market for union labor. Union-produced TV and radio commercials convince consumers to buy domestically manufactured clothing instead of imported clothing.
Suppose that there is limited commitment in the credit market, but lenders are uncertain about the value of collateral. Each consumer has a quantity of collateral H, but from the point of view of lender, there is a probability a that the collateral w..
Why substitution effect does not apply to AD the way it is in the demand for a single product? Does Income effect apply to AD as it is in the demand for a single product? What do we consider when we explain the inverse relationship between price leve..
You complain that the current labor contract specifies a full hour for your lunch break and you still have over 15 minutes left.
Calculate the perpetual equivalent annual cost of $5,000,000 in year 0, $2,000,000 in year 10, and $100,000 in years 11 through infinity. The interest rate is 10% per year.
Per capita income in County A is $45,000. Per capita income in County B is $38,000. Physician visits average 3.4 per year in County A and 3.2 per year in County B. What is the percent change in the demand for visits?
If the United States imports a specific product and exports a different product, what is the likely effect on the price of the product that the United States imports?
Bessimer Electronics manufactures addressable actuators in one of its Maquiladora plants in Mexico. The company believes that by investing $24,000 each year in years 1, 2, and 3, it will avoid spending $87,360 in year 3. If the company does make the ..
What would happen in this market? If consumers’ expectations were such that they were concerned about the economy and jobs, what would you think would happen in this market?
Graphically show and verbally argue that a Walrasian equiblirium in an economy is Pareto efficient as long as preferences are locally non-satiated. How about convexity? ?s it important for this theorem to hold ?
Illustrate what impact might such a reduction in purchases of U.S. treasury securities have on the cost of short- also long-term financing.
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