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Explain the difficulty of defining and using the user cost of capital and discuss the value in making decisions based on it, rather than using accounting expense data. What is the difference between opportunity cost and accounting costs?
Using a supply and demand graph, make one shift of wither the supply or demand curve to illustrate the likely result of this action.
Discuss and explain how exchange rates are determined using supply and demand. Provide some examples. Determine the current exchange rate of the United States to Japan, Canada, Germany, and Mexico currencies?
Explain the effectiveness of the exchange rate regime being used in terms of achieving macroeconomics objectively in South Africa and discuss any four macroeconomics objectives which can be used to judge the performance of the economy.
Suppose that a competitive industry is in long Run competitive equilibrium. Then the price of substitute good (in consumption) decreases. What will happen to the short run to
Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q) = 28Q – 5Q^2 and C(Q) = 100 + 8Q. (Note: MB(Q) = 28 – 10Q and MC(Q) – 8.)
Ship owners would come to Edward Lloyd's coffeehouse to find someone to insure (or "underwrite") their ships and cargo for a fee. Coffeehouse customers-merchants and ship owners themselves-who agreed to insure ships would make payments from their ..
Over the past 3-years, as the result of reducing values for digital cameras, the price of developing traditional 35mm film has increased 5 percent yearly.
Smallville is running a budget deficit. Two policy programs are proposed: (1) eliminate the deficit by cutting government spending and (2) eliminate the deficit but raising taxes. Which program has the least damaging effect on GDP
Nowadays, China drives the global economy. So if the trade barrier is reduced, the Chinese economy will go down and affects the economy of the whole world. Do you agree or disagree with this argument?
The payoff matrix for FORM and GM, each of which is determining whether to offer a technical change or a styling change in a new-model product, is as follows (where H>M>L profits, subscript GM refers to GM, subscript F refers to FORD)
Suppose a four year pure discount bond with a face value of $1000, if current price is $850, calculate the annualized yield of this pure discount bond.
Discuss the three main factors that determine aggregate money demand. Illustrate, with examples, how changes in these factors alter aggregate money demand.
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