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The U.S. has historically low interest rates at present. How would you predict these would impact the value of the dollar on foreign exchange markets? How, in turn, would these low interest rates impact our balance of trade? Explain your answers.
Thomas works in a non-military operation of a large operation that does both non-military and military goods. This company discontinued the production of non-military goods and transferred Thomas to a plant that produced military goods.
A publisher is considering launching a new magazine for women in the 18–25 years age group. It is thought to be vital to the long-term success of the magazine that its sales should reach break-even point within its first year. Explain why the estimat..
Your savings account was earning 3% interest. What are explicit and implicit costs of your decision. What is total opportunity cost this year of starting shop.
Discuss the effect of the following public policies on the supply of labor. If there is a difference, discuss how the effect varies over time (e.g., now versus in the future) or across different groups of people. Allowing a tax credit for childcare e..
Opportunity cost is the lowest valued benefit that must be sacrificed as the result of choosing an alternative. The law of demand states that there is a direct relationship between supply and demand. Excess demand in the market will cause the price o..
An established firm is considering expanding its capacity to take advantage of a recent rapid growth in demand. It can do so in two ways. It can purchase fungible, general-purpose assets that can be resold close to their original value, if their use ..
The demand for 1,000 units of a part to be used at a uniform rate throughout the year may be met by manufacturing. The part can be produced at the rate of 3 per hour in a department that works 1,880 hours per year. The set-up cost per lot is estimate..
Elucidate why liberals have traditionally endorsed national authority.
The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the preformance of the plasma screen makers?
Should certain sectors of the economy be regulated? Which ones and why? Should there be greater or less regulation during certain parts of the business cycle or certain economic conditions? Which ones and why?
Smith Services, Inc., was a corporation solely owned by Tony Smith. Bear, Inc., owned and operated Laker Express, a fueling station in Kentucky. Smith charged fuel to an account at Laker Express and owed approximately $35,000. There was no written ag..
Extensive margin models use Rogerson (1988) style lotteries in order to simplify the savings problem under non-full-insurance.
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