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Quentin has been using his credit card too much. His plan is to use only cash until the balance of $8,574 is paid off. The credit card company charges 18% interest, compounded monthly. What is the effective interest rate? How much interest will he owe in the first month's payment? If he makes monthly payments of $225, how long until it is paid off?
A new gear grinding machine for composite materials has a first cost of P=$100,000 and can be used for a maximum of 3 years. Its salvage value is estimated by the relation S=P(0.85)n, where n is the number of years after purchase. The operating cost ..
Why do behavioral economists consider it helpful to base a theory of economic behavior on the actual mental processes that people use to make decisions? Why do neoclassical economists not care about whether a theory incorporates those actual mental p..
Explain why general level of wages is high in United States and or industrially advanced countries.
Provide an interpretation for the budget constraint. Explain what the slope of the budget constraint is. Explain what sign cant about the point of tangency is between highest in difference curve and the budget constraint. At this point of tangency, w..
Some argue that the government doesn't need affirmative action programs or other anti-discrimination policies because the profit motive provides sufficient motivation to eliminate discrimination in employment. Explain why this might NOT happen i.e. w..
If a transaction imposes external costs, then: A) too much is being produced relative to the socially optimal amount. B) Production should be increased to generate enough profits to cover those costs. C) all production of the good or service should c..
Discuss the role of advertising also the desired impact on the industry's demand curve. Contrast this to advertising at the industry level.
Apple feels it is a price leader in the mobile phone market with all the other producers acting as followers. The total demand for mobile phones is given. If Apple wants to maximize profits, how many mobile phone units should they produce? How much s..
Consider an environment where an agent could be either employed E or unemployed U. Let’s normalize E + U = 1, so that E and U are interpreted as the fraction of people employed and unemployed at any given point in time, respectively. What is the prob..
A monopoly firm faces a demand curve given by the following equation: P = $500 − 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost. How much will the firm produce? Can yo..
If a monopolist must lower the price on all units in order to sell an additional unit, For a perfectly competitive firm,
Describe the Cold War approach to reducing nuclear threats. How do ba;;istic missile defense (BMD) system offer an alternative approach? Who have been the strongest advocates for BMD systems? What is the main weakness of the Cold War approach in toda..
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