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Assume that a piece of equipment has a replacement cost of $10,000 and an 8-year life. Calculate its annualized cost at an interest rate of 15%. Show your calculations.
The economic theory of bureaucracy states that athletic directors: Relative to a perfectly-competitive labor market, a monopolized one: The marginal costs of effort tend to:
Describe the difference in economic profit between a competitive and a monopolistic in both the short and long run. Which should take longer to reach the long-run equilibrium?
CASE: BUYING A CALCULATOR As a student you are on a very limited personal budget, but your research group has a very large budget for supplies. Next semester you will be taking a course in which a calculator with graphics capabilities will be require..
The government wants to make medicare benefits available to more people, but to achieve this goal, it needs to make cuts in the existing medicare budget. The two areas where they are considering cuts are non-essential elective surgery and 6-12 month ..
What is the impact of the trade surplus or trade deficit upon the interest rates and currency exchange rates.
The price-quantity relationship has been estimated for the new prostate cancer blood test: Q = 4,000 – 20 × P. Use a spreadsheet to calculate the quantity demanded and total spending for prices ranging from $200 to $0, using $50 increments. For each ..
Set up a Ricardo-type comparative advantage numerical example with two countries and two goods. Distinguish “absolute advantage” from “comparative advantage” in the context of your example. Then select an international terms-or-trade ratio and explai..
Illustrate what is the interest rate. Jack and Jill both obey the two-period fisher model of consumption.
Freemont insurance sells homeowners insurance. In a recent financial review, managers discovered that company performance was lagging behind projections. Does this group have enough information to make a good decision? Suppose adverse selection is at..
The supply and demand curves are: Qs = -800 + 15p and Qd = 3200 - 25p. Solve for the market equilibrium. Now suppose a tax of $20 per unit is imposed on consumers. What are the new equilibrium quantity, buyer's price and seller's price? What is tax r..
Using the assumption of the past predicts the future write an equation for the weight forecast. Do the same for the assumption of cause and effect. How does the concept of error play into each?
Elucidate in which country is an expansionary monetary policy likely to have a larger effect on aggregate output. Explain your answer using aggregate supply and aggregate demand curves.
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