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Suppose the economy produces only 2 goods: consumer goods and capital goods (K). Also suppose the economy is operating at full employment. Finally, suppose consumer goods are subject to legal price controls (price ceiling). Use a PPF to show the economy's output combination of C and K goods with price controls versus the economy's output combination without price controls. Explin your reasoning.
Compute the ”Capitalized Costs” for Alternates “ R” and” S” using the interest rate of 10% and then select the best choice. “ R “ First Cost - $120,000, Annual Operating Cost - $40,000, Salvage Value - $50,000, and Life (years) - 5. “ S “ First Cost ..
How much will computers sales change by if the company increases computer price by $100 from $1,000 to $1,100.
You have $1000 to invest over an investment horizon of three years. The bond market offers various options. You can buy (a) a sequence of three one year bonds (b) a three year bond or (c) a two year bond followed by a one year bond. Compute the retur..
Discuss in detail the arguments for and against the minimum wage. Be specific about the position of the economists on the issue. NO graphs and NO math.
Discuss the various ways inflation can hinder economic activity. What are some strategies you might use in your life to deal with rising inflation? How might these strategies change if we experienced deflation?
Your car gets 9.5L/100 km at 90 km per hour (kph) and 11.5 L/100 km at 110 kph. At what speed should you make an 800 km trip: a.) If gas cost $0.90 per litre and your time is worth $18/hour? b.) If gas costs $1.00 per litre and your time is worth $12..
At 36 units of labor, a firm finds that both average product of labor and marginal product of labor equal 42. We can conclude that the average product curve at 36 units of labor is
Explain the difference between the Normative Coase and Normative Hobbes approaches to property law. Given your answer to (a), which seems more appropriate in this case?
The operating instruction issued to the European Central Bank is to use monetary policy to focus entirely on targeting the inflation rate. If it follows those rules what would it’s Taylor rule equation look like? Be specific.
What is the objective of the firm manager, and what is the criterion for determining the output level in each of the following cases: The price of the product is less than the shut-down piece?
q.in the wake of the energy crisis in california many electricity generating facilities across the nation are
If the money supply increases, show with should happen if we assume we live in a classical world. With assumptions are you making about the quantity theory of money theory?
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