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Disinflation may cause a. An increase in the value of gold, silver, and gems b. A reduced required return demanded by investors on financial assets c. Additional profits through falling inventory costs d. None of the above.
What economic concept illustrates the fact that at an all-you-can-eat restaurant, one rarely literally eats all the food he/she is physically capable of consuming? Explain.
[Moral Hazard] Consider three investment projects A, B and C. Project A costs $10 and the return is $20. Project B costs $10 and the return is $40 with probability 0.4 and $-10 otherwise. Project C costs $20 and the return is $60 with probability 0.3..
What are the key limitations of per capita national income as a concept of well-being? Explain the nature of limitation in each case. Which of these limitations can be adjusted for? Are they in fact adjusted? What is the basis of the concept of huma..
If two goods are supplements, their cross price elasticity will be:
Spivey just won the Powerball lottery! The $25,000,000 jackpot will be paid in 10 annual instalments of $2,500,000 each, with the first payment to be paid immediately. Spivey's opportunity cost of capital (interest rate) is 4% per year. What is the p..
Using production theory as a basis, is the CEO correct in his assumption that lazy workers or ineffective supervisors are to blame for the decline in productivity? What other explanations might be possible?
What is a standardized budget deficit/surplus? How is it different from actual budget deficit/surplus? How is budget deficit/surplus related to public debt? What is the approximate percentage of US public debt that is owned by foreigners? What is the..
Economists believe that the current values of the deposit multiplier and the money multiplier are widely divergent. Why might these values differ at present? What (if anything) do you think must happen for them to converge once again?
According to a customer, a Harley-Davidson motorcycle can make one feel like "the toughest, macho guy on the block." Harley-Davidson promotes its motorcycles with images of independence, freedom, and power. Harley-Davidson has created a(n) ________.
If the market price of tilapia is $1.60 per pound but the government will not allow tilapia farmers to charge more than $1.20 per pound of tilapia, which of the following will happen?
Larned Corporation recorded the following transactions for the just completed month. $80,000 in raw materials were purchased on account. $71,000 in raw materials were requisitioned for use in production. Of this amount, $101,000 was for direct labor ..
q1. according to okuns law if output grew 7 and full-employment output rose 5 what would be the change in the
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