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The City of Brandon is installing a new swimming pool in the municipal recreation centre. Two designs are under consideration, both of which are to be permanent (i.e., lasting forever). The first design is for a reinforced concrete pool that has a first cost of $ 1 500 000. Every 10 years, the inner surface of the pool would have to be refinished and painted at a cost of $ 200 000. The second design consists of a metal frame and a plastic liner, which would have an initial cost of $500 000. For this alternative, the plastic liner must be replaced every 5 years at a cost of $ 100 000, and every 15 years the metal frame would need replacement at a cost of $ 150 000. Extra insurance of $ 5 000 per year is required for the plastic liner (to cover repair costs if the liner leaks). The city’s cost of long- term funds is 5 percent. Determine which swimming pool design has the lower present cost.
Smith suggests that division of labor leads to increased production through three different avenues. Explain. Smith argues that in civilized society, humans rely at all times on the cooperation and assistance of others. How do we appeal to others for..
Suppose the U.S. president is attempting to decide whether the federal government should spend more on research to find a cure for lung cancer. He asks you, one of his economic advisors, to prepare a report discussing the relevant factors he should c..
The expected salvage value of the furniture is $5,000 in 2015. Determine the recovery period for the furniture and its depreciation deductions over the recovery period.
Assume an open, mixed economy (C+I+G+X=real GDP) and an MPS of .2 What is the multiplier? if the government spending (G) increases by $50B, how much will the real GDP increase? If taxes also increase by $50B, consumption (C) will fall by how much?
Willy owns a small chocolate factory, located close to a river that occasionally floods in the spring, with disastrous consequences. Next summer, Wily plans to sell the factory and retire. The only income he will have is the proceeds of the sale of h..
Demand curves model customer behavior, while supply curves model firm behavior. Therefore the degree of competition in an industry has no effect on the price elasticity of demand that a single firm faces.True or False & Explain
Supply-side economics has a long history, dating back to at least the fourteenth century. The greatest of medieval historians, Abu Zayd Abd-ar-Rahman Ibn Khaldun (1332–1406), included in his book, The Muqaddimah (1377), an Islamic view of supply-side..
The initial impetus for the Food Drug and Cosmetic Act and the Pure Vaccine Act included:
The mean number of mall stores visited by a customer is 4.9 and the variance is 1.9. A new promotion increases the number of stores visited by 2. Calculate the variance of the number of stores visited with the promotion? Use the laws of expected valu..
According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%. What percentage change in the CPI up unti..
How do we understand the state of the economy? What are the indications of the health of the economy? What is GDP? How do we measure GDP? What is the difference between Real GDP and Nominal GDP?
Suppose that the demand in a particular industry is given by Qd = 100 – 2P. When the market price in the industry is $10 per unit, what is the total quantity demanded in the industry? If you assume that each of the four largest firms in the industry ..
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