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1. Why is a piece of machinery(capital) usually considered a fixed input and Labor usually considered a variable input?
2. What determines if you are operating in the short run vs. the longrun?
q1. explain how one of the components of the gdp would help you to predict the amount of inventory to keep in stock if
In the United States, what has been the traditional policy for curbing the market power of natural monopolies such as utilities?
If David's only illness this year results in an appendectomy, explain how many days will he choose to stay in the hospital.
Suppose the velocity of money is constant at 5 transactions per year, the price level for this year is $1, and real GDP this year is $8,000,000. Suppose the economy's output of goods and services rises by 5% each year. What will nominal GDP be equal ..
Suppose that the Mexican Peso is trading at 10 pesos per dollar, the interest rate in the US is 5% and the interest rate in Mexico is 4%. What must happen to the exchange rate in order for the interest rate parity condition to hold?
What is the role o the cost of capital in the valuation process, and what is one of the primaries uses the cost of capital (meaning in what area of chance is the ost often applied)? Why is it important for financial managers to understand the cost of..
Assume that there are 100 identical firms that would be willing to sell 10 units each of the same good if the market price were $5 per unit. Draw a graph of the aggregate supply curve. Indicate on your aggregate supply curve the quantities supplied a..
Do wages clear when the wage equals two. Do we know whether the equilibrium wage is higher or lower than two.
Lana generally buys one hoagie and two diet cokes at Hoagie Haven. Hoagie Haven announces a special deal: a ll hoagies after the first one are half - price. Sketch the original and new budget constraint. What can you say about how Lana’s commodity bu..
argues that our right to breathe and the future of our planet require real regulation instead of this type of government policy. Which of the following describes why most economists would disagree with her statement?
The LoJack car recovery system allows the police to track stolen cars. As a result, they not only recover 90 percent of LoJack-equipped cars that are stolen but also arrest many auto thieves and shut down many "Chop shops" that take apart stolen vehi..
Which of the following is true concerning negative externalities?
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