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Calculating costs
Ginny is working for a marketing firm making $50,000 per year but considers starting her own marketing company. Ginny has determined that to launch the business, she needs to invest $80,000 of her own funds. The annual cost of running the business will include $60,000 for the rent of the office space, $200,000 for employee wages, and $7,000 for materials and utilities. Ginny plans to manage the business, which means that she will have to quit her current job. Suppose that the interest rate (or rate of return) on investments in the economy is 5%.
Why do you think macroeconomists focus on just a few key statistics when trying to understand the health also trajectory of an economy.
The U.S. Bureau of Labor Statistics publishes a variety of unemployment statistics, including the number of individuals who are unemployed and the mean length of weeks that the individuals have been unemployed. Find the confidence intervals of the me..
Assume an economy with a total population equal to 1. Individuals can only be employed or unemployed. Suppose this economy’s steady-state unemployment rate is 5%. We know that workers can lose their jobs and become unemployed with probability 4%. Wha..
find out the annual prices of oil for the past 5 years. By what percentage is the current price higher or lower than 5 years ago.
Suppose that Shelly's preferences for consumption and leisure can be expressed as u(c ,l)=(c-200)×(l-80). Calculate her utility, u0 , if she consumes c = $360 and enjoys l = 110 hours of leisure per week. Evaluate her marginal utilities of consumptio..
As a general rule, is it safe to assume that a lower interest rate will encourage significantly lower financial savings for all individuals? Explain.
Consider and economy with the following production technology: Y = 9K^1/3 L^2/3 , where the aggregate capital stock is K=100, and aggregate labor is L=100. The price of output is 1. Compute the equilibrium wage and capital return. Compute total payme..
Joe won $365,000 a year for life in the state lottery. Use the labor-leisure choice analysis to answer the following. show how Joe's lottery winnings affect the position of his budget line. Joe's utility function for goods per day (Y) and hours of le..
Some kids wait until the school year begins to buy their back-to-school clothes so that they are sure to fit in. Such follow-the-leader behavior is an example of what the text calls:
What effect would a depreciation of the U.S dollar, relative to the Chinese Yuan, have on both our exports to China and our imports from China?
Why considering that it snows only once every ten years where Joe lives, Joe's expectations are almost always perfectly accurate." Are Joe's expectations rational.
Answer this question on the basis of the above demand and cost data for a specific firm. Refer to the above data. If columns 1 and 3 are this firm's demand schedule, the profit-maximizing level of output will be:
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