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Suppose a company produces $5M worth of output and has sales of $2M each to domestic and foreign customers. It imports $1 M worth of raw material, pays its workers $3M in wages, pays its creditors $2M in interest, and has minus $1M in profits for its owners. This company’s operations add $4M to GDP whether measured by the value added approach, the expenditure approach, or the income approach.
If a deposit outflow of $50 million occurs, which balance sheet would a bank rather have primarily or the following balance sheet.
q.use the following hypothetical demand schedule for movies to do exercises 1-4.quantity demanded price elasticity100
Compute the change in the level of real GDP demanded for each of the following values of the MPC. Then, calculate the change if the government, instead of reducing its purchases, increased autonomous net taxes by $10 billion.
Do you find the most important aspect of our economy that needs to be fixed is the budget deficit?
What are the factors that will allow them to increase their added value in this type of competitive environment.
How can you justify existence of government-granted monopolies for such public utilities as local telephone service, natural gas.
Classify each of the following scenarios as an example of adverse selection or moral hazard. Be sure to support your answer! Nordstrom†TM s cannot predict who is going to be a good shoe salesperson.
Consider two neighbouring island countries called Bertland and Ernamia. They each have 4 million labor hours available per week that they can use to produce wheat, clothing, or a combination of both. The table below shows the amount of wheat or cloth..
Utilize Managerial Economics to make your case, and remember that the Senator has not had benefit of the course you are taking. demonstrate and document the trends in medical costs
iv. Find the utility maximizing combination of income and leisure. How many hours will this person work? Imagine the wage rate increases to $8 per hour. Will this person work more hours?
Find the optimal crude oil allocation for the following example if the profit associated with square foot of fiber is cut to $0.375,
Is there anything in what we have studied, that can point us towards an equitable solution to this problem while still protecting the environment we all share? What is that solution?
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