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The Diagonal Stamp Company, which sells used postage stamps to collectors, advertises that its average price has increased from $1 to $5 in the last 5 years. Thus, management states, investors who had purchased stamps from Diagonal 5 years ago would have received a 100% rate of return each year.
(a) To check their calculations, compute the annual rate of return.
(b) Why is your computed rate of return less than 100%?
Identify a PLC company that uses strategic management - this company may be prosperous, booming, in decline, or in economic difficulties.
Expalin, with the use of demands and supply, the difference between a chance in quantity demanded of hats and a chance in quantity demanded for hats.
You may not have heard of the radio as a media before this course, but it is, essentially, any data communication that takes the form of broadcast through the air. How do each of the radiated media differ - not in terms of how they operate, but in..
One stay-at-home mom laments, “Lots of career women think the only reason I’m staying home is that I’m not capable of doing anything else.” Evaluate this criticism. In other words, is it true that the only reason women don’t enter the labor force is ..
The price of x1 is 3$ and the price of x2 is $1 and Jack has an income of $90. A) How much of each goods will he demand? A 1$ quantity tax (t) is placed on x1 so that now x1 costs $4 to Jack while his income and the price of x2 stay the same. How muc..
"Low demand in this year's economy caught producers unaware, forcing their inventories to increase." How does this inventory change appear in the GDP calculation when adding up all expenditures?
If by bad management components of a corporation become competitive, the system is destroyed. A common example lies in the practice of ranking people,
What is the importance of measuring price fluctuations? How does the change in average price help explain the difference between nominal and real interest rates? (Macro economics, course number AB204)
Draw a graph for an individual with a strictly concave expected-utility function, who has wealth y and faces the possibility of a loss L which occurs with probability p. Show expected wealth, expected utility, certainty equivalent and risk premium. L..
Exchange rates can be impacted over the long run or short run. a. There are four forces that affect exchange rates over the long run. Name them. b. Exchange rates can fluctuate quite a lot in a short period of time (a day or two). Which factors help ..
Distinguish between liberal economics and conservative economics. Why is macroeconomics an inherently political subject? Summarize the problems that can be created by rapid inflation. How can inflation become self-perpetuating?
Two power plants are currently emitting 8,000 tons of pollution each (for a total of 1,600 tons). Pollution reduction costs for Plant 1 are given by MCR(1)=.02Q and for Plant 2 by MCR(2)=.03Q, where Q represents the number of tons of pollution reduct..
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