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At the time this book went to print, the minimum wage was $5.85. To find the current value of the CPI, go to Click on Consumer Price Index-All Urban Consumers (Current Series) and select U.S. All items. This will give you the CPI from 1913 to the present.
a. With these values, calculate the current real minimum wage in 1990dollars.
b. Stated in real 1990 dollars, what is the percentage change in the real minimum wage from 1985to the present?
Analyze how production and cost functions in the short run and long run affect the strategy of individual firms.
Suppose that there is a cultural shift in America emphasizing the importance of saving money as opposed to current consumption. a.) Illustrate the impact on the interest rate in the market for loanable funds. What direction does the interest ra..
Few trends could so thoroughly undermine the very foundations of our society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible." Explain why you agree or disagre..
An increase in fiscal deficit spending financed by borrowing will not affect the national debt but decrease interest rates. Internal ownership of the debt refers to the portion of the national debt owned by government agencies.
If Microeconomics is considered to be study of scarce resources. In which customers must make allocation decisions. These 3-basic trade offs include which products or services are to be manufactured
The Principal-Agent Problem: You are hired as a management consultant to provide recommendations on how to stimulate productivity of the manufacturing firm that produces Printer Cartridges. Your 50% of the variable salary (consulting fee) is direc..
Suppose you manage an agency that provides Meals on Wheels to infirm elderly residents in the county. The agency operates three kitchens. Each kitchen is producing one-third of the total meals every day.
Do you think the demand for mangoes is price elastic or price inelastic? Explain your answer based on the determinants of price elasticity of demand.
Pick a good or service you are familiar with. Speculate how the price for that good or service may have been set and how well this price maximizes profit for the company and determine what shifts the company should make in its pricing strategy.
On the other hand, suppose that the Fed has a goal of 10% inflation. Use similar logic as in the previous question to show what the Fed must do to the money supply.
Short-term loans between banks are called
Perform residual analysis using time series plots, autocorrelation analysis, histogram and a normality plot to determine if the residuals are random. Show the graphs.
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