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Suppose incomes increase in the economy, and the number of sellers of logo shirts also increase. What will happen to equilibrium price and quantity of logo shirts?
Calculate the expected value of an investment that has the following payoff frequency: a quarter of the time it will pay $2,000, half of the time it will pay $1,000 and the remaining time it will pay $0.
Why do governments prefer to avoid excessive current account surpluses? Or, why are growing domestic claims to foreign wealth ever a problem?
The cost functions of a competitive firm are: TC = 40 + 2.5Q2. The marginal cost function is MC = 5Q. There are currently 200 identical firms in the industry. The demand function is P = 16000/Q. Find the market equilibrium price and quantity. Explain..
Assume a few years ago you have bought a machine for your company for $25,000. Now it can be sold on the open market for $5,000 and its current BV is $12,000. How much is the opportunity cost of your machine?
Thoreau has preferences for consumption goods (C) and time spent on leisure (L). The utility function is u(C, L) = CL. The household also has a home production technology summarized by a production function. How much time will Thoreau spend in leisur..
Assume an annual interest rate of %7. Which of the two units would you recommend ? What initial cost of machine A woul make the two machines identical in overal cost?
The issue of competition over time presents a number of problems for a firm. Based on research for this question and personal experience, what do you believe is the most effective way a firm can compete over time? Your answer should address some of t..
There has been a monetary expansion of Rmb2.5tn ($380bn). What is the relationship between money supply, money demand and the interest rate? With the use of diagrams explain and illustrate the effects of quantitative easing on consumption and investm..
Explain why does the profit motive does not automatically avoid air pollution in the production of steel and other products.
Explain why you would be more or less willing to buy long-term AT&T bonds under the following circumstances:
An economy needs 400 bn. Spending to close the recessionary gap, multiplier is 4; what should be the increase in spending on the part of the of the government?
Net foreign direct investment has been a (significant) positive number for the US since the mid 1980s. That represents more investment flowing into the US than out. Given that, one would normally conclude that the flow of net interest payments would ..
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