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a) In macroeconomics, we assume that total rental and labor income (wL+rK) is equal to total output (Y), use your previous answers to show that Income=Output is the case.
b) What are the shares of Income that Labor and Capital receive of total income? (As in what fraction of total income does Labor and Capital each earn?)
How much would the company have to invest now at an interest rate of 3% per year to sufficiently provide for the annual payments, if the first payment will begin 4 years from now? Specify answer to nearest cent
The Center for Medicare and Medical Services reported that there were 295,000 appeals for hospitalization and other Part A Medicare service. Compute the probability that none of the appeals will be successful. Compute the probability that exactly one..
Consider the following game. Firm 1, the leader, selects an output q1, after which firm 2, the follower, observes the choice of q1 and then selects its own output q2. The resulting price is one satisfying the industry demand curve P = 200 − q1 − q2. ..
Suppose there is a single consumer with U = Sl, where S is steaks and l is leisure time. The Consumer is endowed with one unit of leisure time, and the production for steaks is S = l / c , where c >0 is a constant. Find the equilibrium consumption of..
You are thinking about becoming a Paradise Coffee franchisee. Franchisees are offered a business specializing in producing an exclusive line of exotic coffee drinks (similar to Starbucks). What is the estimated explicit (accounting) cost of your prop..
Social Security has revenues of $1.8 trillion and expenditures of $1.3 trillion. The nonsocial Security budget has revenue of $2.1 trillion and expenditures of $2.4 trillion. The official budget will report a _______________ (deficit/surplus) of $___..
Do you agree with the quote "Business social responsibility should not be coerced; it is a voluntary decision that the entrepreneurial leadership of every company must make on its own," Why or why not?
Suppose that the equilibrium real federal funds rate is at 4% and the target rate of inflation is 1 percent. Use the following information and the Taylor rule to calculate the federal funds rate target:
The graph to the right shows the Marginal Cost (MC), Average Total Cost (ATC), and Marginal Revenue (MR) curves for a perfectly (or purely) competitive firm. Note that the Demand (D) curve is the same as the MR curve for such a firm. Assume that the ..
Suppose that a profit maximzing monopolist’s marginal costs increase at all output levels. What is likely to happen to the quantity the monopolist produces, AND the price it charges? Support your answer.
Consider the following possible schemes for taxing a monopoly: A proportional tax on profits. Explain how each of these taxes would affect the monopolist's profit-maximizing output choice. Would the tax increase or decrease the deadweight loss from m..
Find the equilibrium level of GDP demanded in an economy in which investment is always $300, net exports are always -$50, the government budget is balanced with purchases and taxes both equal to $400, and the consumption function is described by the ..
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