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If you buy a new car, the entire purchase is counted as consumption in the year in which you make the transaction. Explain briefly why this is in one sense an "error" in national income accounting. (Hint: How is the purchase of a car different from the purchase of a pizza?) How might you correct this error? How is housing treated in the National Income and Product Accounts? Specifically how does owner occupied housing enter into the accounts? (Hint: Do some Web searching on "imputed rent on owner occupied housing.")
Explain what the results of such a move are for the graham cracker market. In other words, will there be a shortage, a surplus, or neither created? Why?
Workers in Wet Seal and Forever 21 stores are considering forming unions in each store. The potential unions have information on labor demand. For Wet Seal, when the wage rises from $8 to $10, Wet Seal will reduce labor demand from 800 to 700.
In a hypothetical economy, the monetary aggregate M1 equals 120,000 pesos, and M2 equals 320,000 pesos. The following information about this economy is also available: Money market deposit accounts 80,000 Amount of currency held outside of banks.
Currently the wheels cost $4 each, but for a number of reasons the price will double. In order to produce the wheels themselves, Pramble would have to add to existing facilities at a cost of $800,000. It estimates that its unit cost of production ..
From the BET constants obtain the surface area of the soil and the adsorption energy for benzene on this soil.
What is the composition of the Board with regard to age, gender, education, previous employment, and ethnic background? Which Board members are near the ends of their terms?
Suppose the world population today is 7 billion, and suppose this population grows at a constant rate of 3% per year from now on. (This rate is almost certainly much faster than the future population growth rate)
Country A has 26400 units of labor and can produce 2 goods, manufactures and food. A's producers take 2 units of labor to produce one unit of manufactures and 5 units to produce one unit of food. Country B has 35000 units of labor and takes 7 unit..
Assume the interest rate (and your discount rate) is 10 percent what is the actual payoff The correct answer is $13,518,048 (rounded to the nearest dollar) But I keep getting $12,289,134 (rounded to the nearest dollar)
It is found that the amount of income not declared is, on average, different among the countries. Discuss possible explanations for this finding.
Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $750,000, an operating cost of $60,000 per year, and a salvage value of $80,000 after its 2-year life.
Queen Elizabeth has decided to auction off the crown jewels, and there are two bidders: Sultan Hassanal Bolkiah of Brunei and Sheikh Zayed Bin Sultan Al Nahyan of Abu Dhabi. The auction format is as follows: The Sultan and the Sheikh simultaneousl..
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