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Discuss an event in your home city or state that brings new economic activity. It might be a major construction project, or major sporting event that occurs infrequently and brings a large number of people to your local area. Describe who benefits from the first-round multiplier effects? Also, identify the workers who are affected during the second-round multiplier?
q1. assuming the abc bank has excess reserves of 5000 it could prudently expand its loans by a maximum of?q2. the
Compute the opportunity costs for producing a single Twinkie and a single cupcake for Jasper and for Jasmine. Does either have an absolute advantage in the production of Twinkies.
Loyalty programs are more the norm than the exception. Once all competitors offer similar schemes, all that happens is that marketing costs have risen in that industry. Argue for or against the proposition that loyalty programs are effective customer..
Consider an industry with inverse demand: p (y) = 90 − y where y denotes industry output. There are two firms: firm 1 is the incumbent firm and firm 2 is the potential entrant. Firm 1 can adopt one of two technologies. Suppose firm 1 adopts technolog..
A corporation just issued a 10 year, zero coupon bonds having a YTM of 10%. Under current tax law, how much interest can the corporation deduct in the first year?
For our simple model, suppose that the quantity of regular beer demanded per year (Q) is a function of the price of regular beer (p), the price of premium beer (p’), the temperature (t), and the income of consumers (Y): Q = D (p, p’, t, Y). Quantity ..
Julon Petro Materials, Inc. ordered $8.5 million worth of seamless tubes for its drill collars from the Timken Company of Canton, Ohio. (A drill collar is the heavy tubular connection between a drill pipe and a drill bit.) At 10% per year interest, w..
A cigar seller notices that the demand for cigars is highly inelastic. In an attempt to increase revenue, he lowers cigar prices. Explain briefly whether he has made the right or wrong decision and why? For full credit you have to use a diagram to ma..
A firm making more than a normal profit may still be experiencing an economic loss. An inferior good is a good whose demand decreases as its prices decreases. As new firms enter a monopolistically competitive market, the demand faced by each competin..
What is an absolute and comparative advantage? Give an example from your own life where you have an absolute, but not a comparative advantage with someone else.
All of the following are considered input barriers to entry except:
expected profit from machine decreases. Rental cost/user cost of capital will decrease when: real interest rate falls. This fully anticipated monetary expansion will cause which of following to occur.
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