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Please read Business Case 10.3 - Inside Traders or Astute Observers:
In three (3) paragraphs, please answer the following question:
Suppose that you leave a job that pays $40,000/year and use $10,000 of your savings that had been earning $500/year in interest in order to start your own business. In your business, you sell 450 units at $60/unit while paying $12,000 for capital cos..
What is the difference between gross domestic product (GDP) and gross national product (GNP)? What is the difference in what GDP measures compared to GNP? Based on the table, what calculations must you make to determine GNP from GDP?
In your own words, explain what corporate social responsibility (CSR) is. Name two examples of social responsible companies you know and explain why you consider them so.
Locate two recent articles regarding the current global economic crisis.
Consider the model of Tversky and Kahneman (1991) developed in class. Suppose that each person’s wealth consists of three parts: mug (denoted as M), candy (denoted as C), and money (denoted as m). People take their initial endowments as their referen..
Which of these displays price discrimination?
Contrast the ideas of nominal GDP and real GDP. Why is one more reliable than the other for comparing changes in the standard of living over a series of years? Apply the concept of a price index to comparing the rise and fall of gas prices over a sev..
Assume there is a market with only two profit maximizing companies (duopol) where each company has MC = AVC = 20 and no fixed costs. Also assume that market demand is Q = 100 - 0.5p. If both companies compete and chooses their given supply quantities..
Which of the following is a characteristic of a monopoly?
The property appraisal office for Mobile County has just installed new software to track residential market values for property tax computations. The manager wants to know the total equivalent cost of all future costs incurred when the county commiss..
Suppose First National Bank holds $100 million in assets with an average duration of 4 years, and it holds $85 million in liabilities with an average duration of 3 years. Further suppose there is a 2-percentage-point increase in interest rates. Calcu..
The manufacturer is especially concerned that customers who receive lousy service will blame the manufacturer if the machine breaks down, not the ISOs. How should the manufacturer address this problem?
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