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Q1. Americans already enjoy living standards that far exceed world's average. Should we even try to produce more, do we have sufficient?2. Explain how might the following government intervention affect a nation's economic growth:
(a) Mandatory school attendance (b) High income taxes (c) Copyright and patent protection (d) Political corruption.
Q2. Describe the determinants of varying levels of income. What factors determine a wages of a person? In your opinion, do these qualifications always hold true?
Assume there are no other countries willing to trade goods, so when there is no trade between these two countries, each country consumes the amount of wheat and clothing it produces.
Capital stock at the end of the year of this economy to remain constant as the beginning of the year, how much investment is needed.
Show how the transaction would have been recorded in the German balance of payments accounts. What was the net effect on the German balance of payments.
If the firm's MARR is increased to 25%, what would be the required savings in leasing so that the project would remain profitable.
Coupled with $160 annual tax rebate per household. Will the household be better or worse off under the new program.
In 2012, Balnur taught music and earned $20,000. She also earned $4,000 by renting out her basement. On January 1, 2013, she quit teaching, stopped renting out her basement, and began to use it as the office for her new Web site design business.
Comparing Investment Criteria Mario Brothers, a sport producer, has a new idea for an exploration sport.
The impossible trinity refers to the idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
Why might bad cars drive good cars out of the used-car market. Give at least two possible solutions to resolve this paradox.
Assume that during the last month of the tenth year of ownership, the property in Problem 2 is sold for 1,500,000. Assume also that the seller incurs transaction costs equalling 6 % of the sales price.
Now Assume the theater increases the number of its ads to 250. Should the theater increase its cost following this ad campaign.
Do you believe that profit (or shareholders wealth) maximization still represents the best overall economic objective for today's corporations.
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