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Analyze the economy in Section 10.6 under the closed-economy assumption. Show that an increase in a1 for group 1 workers now creates a dynamic externality, in the sense that current output increases, which leads to greater physical and human capital investments in the next period.
Consider the setting of in-text exercise 19.1 (page 714). If the fixed costs associated with being active in this market are $30,000 per year, how many firms will enter the market?
Determine if the company has introduced new products in existing markets or created new markets over time. What is the impact on its finances?
a firm in a purely competitive industry has typical cost structure. the normal rate of profit in the economy is 5 percent. this firm is earning $5.50 on every $50 invested by its founders. what is the percentage rate of return
Using the following national income accounting data, compute (a) GDP, (b) NDP, (c) NI. All figures are in billions. Compensation of employees U.S. exports of goods and services Consumption of fixed capital (depreciation) Government purchases Taxes on..
Suppose Bruce Springsteen's objective in choosing whether to auction the tickets or to set a price of $100 is to maximize the market consumer surplus. Which does he choose: an auction or a $100 price
Analyze tax issues regarding corporate formations, capital structures, income tax, non-liquidating distributions, or other corporate levies - Create an approach to tax research that results in credible and current resources.
Suppose that you believe the fundamental value of Wal-Grey stock is about to rise from $50 to $100 because of its new management team. You have $20,000 that you can risk in the market, where the market interest rate is 6%. You can think of four po..
A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number of calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls.
Suppose you are an analyst for the Coca-Cola company. An individual's inverse demand for Coca-Cola is estimated to be P = 98 - 4Q (in cents). If Coca-Cola is produced according to the following cost function TC = 1,000 + 2Q (in cents).
? What is the relationship between the terms of trade in a world of two trading nations? How are the terms of trade measured in a world of more than two traded commodities?
Suppose a special tax was introduced that used the value of one's automobile as the tax base. Each person would pay taxes equal to 10 percent of the value of his or her car. Would the tax be proportional, progressive, or regressive
Suppose that the interest rate is 4 percent. What is the future value of $100 four years from now How much the future value is total interest By how much would total interest be greater at a 6 percent interest rate that at a 4 percent interest rat..
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