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There are over 30 million firms in the U.S., of which about 5.8 million are corporations. A mere 35,000 of these corporations have annual sales of over $50 million, and this relative handful of corporations, commonly thought of as "big business", account for over 80% of total corporate profits in this country. Are those millions of other corporations, sole proprietorships, and partnerships outside of big business fairly insignificant to the U.S. economy then? If not, then what is the importance of these smaller companies to the national economy?
By writing more notes than the amount of gold held, the goldsmith could lend the notes and charge interest on them. Did the goldsmith bankers make money out of thin air in a form of legal theft What were the main benefits fromt he activities of the..
Discuss completely all forward exchange transactions that take place when the contracts are made. Describe what actually takes place three months later.
1) Other things being equal, a reduction in taxes will 2) According to supply side economists, lower marginal tax rates will not necessarily lead to lower tax revenues because
Consider the equation: Y= C(Y-T) + I + G a. Calculate the total differential for this equation. b. Holding I and G constant, derive an expression for the tax multiplier (dY/dT)
Illustrate what would be various variations and perspectives from current economic downturns
You observe that output is above full-employment output. Politicians are discussing about the possible reasons. One party claims that this is due to a drop in world oil prices.
Suppose that technophiles are willing to pay $400 now for the latest iPhone, but only $300 if they have to wait a year. Normal people are willing to pay $250, and their desire to purchase does not vary with time. Ignore the time value of money a..
Explain what are the factors you identified similar or dissimilar for the embezzlement and burglary plots.
The plant will cost $10,000,000 to build, has an annual operating expense of $600,000, and must be renovated every 20 years at a cost of $1,000,000. The trust fund earns 6% interest. What amount must the company put in the trust fund?
Find out an output which maximizes the total revenue. Calculate the price elasticity of demand at this output.
In some European countries, laws are in place that give a lot of protection to workers and keep them from being unfairly fired. What is your take on these laws ? Give a more insight.
In the late 1990's "mad cow" disease caused people to buy less beef. It also caused the European Union to ban imported British beef and the British government to ban the sale of older cattle. What is the effect of the above on price and quantity o..
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