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Northwest Iron and Steel is considering getting involved in electronic commerce. A modest e-commerce package is available for 20,000$. if the company wants to recover the cost in 2 years, what is the equivalent amount of a new income that must be realized every 6 months, if the effective interest rate is 3% per quarter?
Assume that there are two types of consumers. In particular, consumers of type 1 has utility function u(x, y) = x^0.5 y^0.5, whereas consumer of type 2 has u(x, y) = x^0.3 y^0.7. Both of them have income given by I>0, and the prices denoted are by PX..
The elasticity of demand for cigarettes is estimated to be about - 0.5. Assume the elasticity of supply of cigarettes is 1. If the government places a tax of $0.60 on cigarettes, how much will the price of cigarette increase (approximately)?
Variable costs are costs that _______ in total, but ________ as the business activity level changes: A. change; remain constant per unit B. change; change per unit C. remain constant; remain constant per unit D. remain constant; change per unit
Identify the four major tools of monetary policy. How can monetary policy address the problem of inflation?
Describe when you have experienced diminishing marginal utility. Also discuss opportunity costs you have had to pay in order to attend school
The unsold computer is carried on XYZ's books as an $800,000 increase in inventory.
Average tax rate is a. total taxes paid divided by total income b. measures the sacrifice a taxpayer makes c. measures the incentive effects of taxes on work effort, saving, etc. d. Both a and b. e. All of the above.
Consider a simultaneous-move auction in which 2 players simultaneously select bids, which must be in nonnegative integer multiples of one cent.
Cost-push inflation can be called
Assume your local congressman calls you for some economic advice. He wants to sponsor legislation to increase public spending on such common medical interventions as because he’s been told early detection saves money:
What are the major arguments protectionists use to justify trade barriers? Which of these arguments do you agree with? Disagree with? Why is protectionism still so powerful politically?
1. Assume households have utility function U(C, I) = 2cl1/2, can earn wage w per hour worked, and receive V in non-wage income. Total amount of time available for leisure l and labor h is T = h + l.
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