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Define saving and investment. Data for the simple economy of Newt show that in 2011, saving exceeded investment and the government is running a balanced budget. What is likely to happen? What would happen if the government were running a deficit and saving were equal to investment?
Assume your expected incomes in years one and two are $60,000 and $70,000 respectively. You have 40,000 in cash in year 0. Market interest rates for one-year loans are 8% in year 0 and 14% in year 1.
Assume total benefits also total costs are given. Elucidate level of Y will yield the maximum net benefits.
Describe the maximum and minimum amounts that can be produced
A person rents a home for which she pays the landlord $12,000 a year. The can can be bought for $100,000 and tenant has this much money in a bank account that pays 4 percent interest per year.
The Toys-R-Danger-Us Toy Company can produce 500 water pistols for a total cost of $1,400. The company can also produce 1,000 water pistols for a total cost of $3,000, but it would have costs of $200 even if it produced no water pistols.
Consider the case of a regulator and a single polluter. Suppose the regulator knows the marginal damage from pollution but is unsure about the firms marginal savings from emitting. The regulator asks the firm to reveal its marginal savings from em..
If average variable price are assumed to remain constant over a 10 percent increase in output, evaluate the effects of the proposed price cut on total profits.
Among the advantages of technique of forecasting are ease of calculation, relatively little requirement for analytical skills, and the ability to provide the analyst
estimate the average years of seniority for employees working for Kaneko Ltd. The files of 49 workers are selected at random. Average seniority for those in the sample is 13.6 years. Assume you know the population standard deviation is 5.2 years.
What is Bill's opportunity cost of producing one hat, In which of the two activities does Mary have a comparative advantage.
Explain how did the Mexican peso crisis differ from the Russian ruble crisis. What was the role of the IMF in these two currency crises.
Assume that potential rural-urban migrant would work for two periods ( of some length) in either the rural or the urban area.
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