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Question1: A potential entrepreneur is trying to make a decision whether to open a new health spa. She presently makes $35,000 per year as an aerobics instructor and will have to give up this job if she opens the new spa. If she chooses to open spa, it will cost her $200,000 per year in rent and other operating expenses.[a] Determine her accounting costs?[b] Determine her opportunity costs?[c] How much would she need to make in revenues to earn positive accounting profits? Positive economic profit?[d] If a firm makes positive economic profit it means that the firm earns normal profit. True or false? Comment.
Question2: 4. Production function specifies the maximum output that can be produced given varying degrees of technological progress. True or false, explain.
Explain how the distinction between expected and unexpected inflation is important to the distributional effects of inflation.
Determine the Groups Share of and the Income Split Point for Individual Income Taxes as of 2003 for the following group of income earners:
Currently one argument against the continuation of state regulation of insurance and one argument.
Explain the nation will move toward an international monetary system or fixed exchange rates in the future.
Illustrate what are the impacts of an easy monetary policy on the price-level and real output
second quarter on strong organization wide sales growth, beating Wall's Street's expectations. What happened to their stock after the announcement.
The Joe firm is experiencing financial problems. Its dividends and earnings are falling at a constant rate of 7 percent per year. It's stock just paid a yearly common stock dividend of $1.50 per share;
Assume the government decides to pass a law that requires all businesses to delay all future layoffs, giving at least 3 months notice to any workers they plan to lay off.
Explain how will these events impact the equilibrium price and quantity of generic soft drinks.
The following outputs considered an intermediate good, a final good, or neither for purposes of calculating GDP in the current year.
Examine the contribution that automatic stabilizers play in creating a stable economy.
Elucidate do labor unions have a role to play today. How important is this role.
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