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An annuity runs for 25 years as follows: at the end of each of the - . first ten years 500 is paid, and then at the end of each of the last 15 years 300 is paid. If i= .08, find the value of this annuity three years before the first payment.
Both the long-run aggregate supply curve and the short-run aggregate supply curve shift in response to changes in the availability of labor or capital or to changes in technology and productivity.
What is the capitalist, free enterprise ideal? U.S, Japan, European companies are usually the first to design, invent and innovate products. What happens toward the end of these new products international life cycles? What must happen to the economie..
This is a point I find very confusing and very hard to justify to students. Depending on the books, one finds many different conventions regarding the sign of elasticities and marginal rate of substitution (MRS). Some define them taking absolute valu..
Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 600 shares at $78 per share with an initial margin of 25 percent. One year later, the stock is selling for $84 per share, and you close out your positi..
The political independence of central banks is an increasingly important issue in the global economy. What is the global trend in the political independence of central banks? Is this good or bad for the global economy? Explain with examples.
A pulpwood-forming machine was purchased and installed 8 years ago for $50.000. The declared salvage value was $5000, with a useful life of 10 years. The machine can be replaced with a more efficient model that costs $90,000, including installation. ..
You buy a new pair of shoes on sale. The printed receipt states very clearly that the shoes are not returnable. After you get them home, you wear the shoes around the house for a day and decide that they just don’t fit you correctly.
Given prices for two goods PX = 2 and PY = 3 and a budget of $120 a consumer is trying to maximize the utility function U(X, Y ) = 2X^0.3Y^0.7 Use the Lagrange method to solve this problem, but don’t worry about the second order conditions. Write and..
A firm operating in perfect competition receives $45 for each unit sold. The form has a variable cost of $25 per item and a fixed cost of $1600. What is the profit for the firm if it sells?
q.suppose a firms production function is given by q l12k12. the marginal product of labor and the marginal product of
Group health plans, that offer policies covering all of a firm's employees, can partly address the adverse selection problem by:
Compute the price elasticity of demand for subway rides. If the transit authority reduces the fare back to 50 cents, what impact would you expect on the ridership? Why?
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