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George is going to replace his car in 3 years when he graduates, but now he needs a radiator repair. The local shop has a used radiator, which will be guaranteed for 2 years, or they can install a new one, which is "guaranteed for as long as you own the car." The used radiator is $250 and the new one is $450. If George assumes the used radiator will last 3 years, but will need to be replaced so he can sell the car, which should he buy? Develop a choice table for interest rates from 0% to 50%. George's interest rate on his credit card is 20%.
Any goods from all should be of higher demand than supply; the other good should show higher supply than demand.
Describe the Lucas critique. Why might the level of government debt affect the government's incentives regarding money creation?
How does a government budget surplus affect the U.S. economy? Identify two periods in recent history in which the United States has run budget surpluses.
At the equilibrium point in the above graph, which of the following is false?
Illustrate difference between economies of urbanization and economies of localization. Give examples of each.
q1. the wall street journal once stated regarding fannie mae and freddie mac that their profit is privatized but their
What will be his economic profit. How much consumer surplus is generated each day at this price. Illustrate what is the socially efficient number of portraits.
If the average worker produces $80,000 of GDP, explain by how much will GDP increase if there are 150 million labor-force participants and the unemployment rate drops from 5.2 to 4.5 percent.
Illustrate what are the opportunity costs for the manager of being in this business relative to returning to his old job. What is the economic profit of the business.
who expend resources to ensure that y only buy IPOs that will yield positive returns over time and uninformed investors who buy stock indiscriminately and without information (Rock, 1986, p. 190). Could IPOs Be Lemons.
With the decrease in demand for bridge and tunnel crossings, what is the optimal way to adjust tolls: raise tolls, lower tolls, or leave unchanged.
Show that if the food stamps could be legally re-sold, the welfare of the household would be increased. Give one reason why food stamps should not be re-sold.
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