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A. Explain why economic costs include both explicit costs and implicit costs.
B. Explain the concept of opportunity cost as related to the doctor in the Khan Academy video who gave up his profession to open a business.
C. What other factors do you think the doctor may have considered when he decided to leave his profession to open a business?
The long-run and short-run aggregate supply curves reflect fundamental differences between long-run and short-run macroeconomic analysis.
What is being held constant when a demand curve for a specific product (shoes or apples, for example) is constructed? Explain why the demand curve for a product slopes downward to the right.
If interest rates differ between two countries, it is an indication that the financial markets are not in equilibrium, and that investment flows should be taking place between the two countries. Agree? Disagree? Explain.
Suppose you have an asset that costs $11 in time period zero and has an IRR of 18%. With a retained earning rate of 5% on your remaining $7, what is the highest loan rate that would support investing in this asset? Calculate.
Utilize this expression to derive the potential bounds for the income elasticity of other goods.
if korean exports to the united states decline by 15 billion by how much will cumulative korean spending drop if their
In general, correcting income distribution data for taxes and transfer payments results in:
If the government were to increase taxes on gasoline, what will happen to the total government revenue? Why? What are you assuming about the elasticity of the demand curve of gasoline? What is the formula for elasticity? Would the government make mor..
A bond pays semi annual interest payments of $42.50. What is the coupon rate if the par value is $1,000? You are buying a bond at a quoted price of $892. The bond has a 7.5 percent coupon and pays interest semi annually on February 1 and August 1. Wh..
Why do the United States and many other countries have antitrust laws on the books? What's so harmful about oligopoly that warrants an entire body of law?
Considering the following concepts such as GDP, unemployment, monetary and fiscal policy. Pick an recent newspaper article (New York Times, Wall Street Journal, etc.) that focuses on DELL INC. Describe the event and the issue for DELL INC. (summarize..
Consider the following two-firm Cournot game. Suppose market demand is given by the equation P=24-Q, where Q= qA+qB. Suppose each firm has only four options: 6,7,8, or 9 units of output. What is/are the nash equilibrium for this game? Does the domina..
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