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Max Whitley, manager of Whitley Construction, builds new homes in a booming community in the Midwest. Although the sales have slowed down because of a national recession, it now looks as if the recession is about to end. Max wants to be ready with material, labor and foremen to meet the demand for housing. Last year, Max built and sold 40 ‘starter homes', the most popular model. With a recent recession over, Max thinks that his sales will increase to 50 units for the current year. The going market price for this model (which Max and his numerous competitors have charged) has been $75,000. In addition, Whiteley Construction's marginal cost of building this model averages $55,000. Based on these facts, suggest a course of action for Max. Suppose the economic boom raises the cost of labor and raw materials, so that the additional cost of a starter house raises to $65,000. What is Max's most profitable course of action?
Explain why a lump-sum government transfer can entice some workers to stop working (and entices no one to start working) while the Earned Income Tax Credit (EITC) can entice some people who otherwise would not work to start working.
Southeastern Bell stocks a certain switch connector at its central warehouse for prividing field service offices.
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
Choose one best practice from an organization or management that you are familiar with, and then whether that best practice can be implemented into the culture of a governmental entity and how it can improve service delivery to its citizens.
Identify at least four policies from the textbook that the government has created to impact economic growth and productivity.
Suppose a hedge is desirable, what hedging techniques are available to the treasurer and what are the advantages and disadvantages of each.
If the government imposes a quantity tax on the consumption of a good, it means that the consumer has to pay for each unit of the good its price plus the tax.
Some possible platforms on which to write are comparative advantage, gains from trade, World Trade Organization and trade restrictions.
Explain how these assumptions either do or do not apply to an industry of your choosing. When doing this forum be careful not to use a market outcome, like allocating goods to those that most value them and confuse it with an assumption - assumpti..
Illustrate what is the difference among real GDP and nominal GDP. Does GDP accurately reflect our nation's productivity.
Using the concept of opportunity cost, explain why in developed countries with higher average incomes there is more support for costly environmental controls.
Describe why population growth has such a negative impact on economic growth in Malthusian and Neoclassical growth models.
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