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Briefly outline the problems with actually doing international trade/business, and outline the institutions, government actions, and private actions/products that exist that make the process easier. Which of the impediments to easy trade are each designed to overcome?
Suppose that the yield curve shows that the one year bond yield is 3 percent, the two year bond is 4 percent, and the three year yield is 5 percent. What are the expected one year interest rates next year and the following year? If the risk premiums ..
Discuss the price elasticity of demand. Give the formula and an example, distinguish elastic and inelastic demand, and list the factors that influence the elasticity of demand. No graph is necessary
Assume that an economist states that she believes the Federal Reserve should ensure that nominal GDP grows by 5% every year and that is all the Federal Reserve should do. Which of the following is true about this economist?
Derive the income elasticity of demand function for individuals with (a) cobb-douglas (b) perfect substitutes and (c) perfect complements utility functions
Starting with the situation in part d, suppose the government starts taxing the population $30 each year without spending anything.
Given a company orders a product and expects the defective fraction, E(p), to be 5%. Demand is 15,000 units annually and they screen at a rate of 60,000 units annually (think of this as the QC check which is done much quicker than demand arrives). Ca..
You are becoming addicted to World of Cowcraft, a popular MMORPG. After playing for a few hours, you estimate that in the next hour, you can produce 100 WoC gold. Due to your increasing skill level, you estimate that every hour thereafter your gold o..
January $40,000, February $30,000, and March $50,000. For each month, prepare the entry to assign overhead to production using a predetermined rate of 80% of direct labor cost.
Explain how does a firm determine its prices also the quantity of labor need in the resource market during a specific period. How does a firm determine its demand for capital funds during a specific period.
Find the equilibrium interest rate. Now suppose that G rises to 1,250. Compute private saving, public saving, and national saving. d. Find the new equilibrium interest rate.
Which of the following is not a valid point in debating the merits of increasing government expenditures or cutting taxes during a recession?
According to posting from last fall, sales for products such as Spam, pancake mixes, instant potatoes, rice and beans have been booming during the recession; a spokesperson from a grocery chain is quoted as saying “They’re real belly fillers.” Commen..
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