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Q1. a. Why does an exporter face a foreign exchange risk? How can the exporter hedge its foreign exchange risk?
b. What do you assume the interest on payday loans is too high or it is just right? Should Christians charge poor people interest on loans?
Q2. A manufacture procedure using 2 inputs, labor as well as capital, can be written as Q = 5LK where Q characterize output per day (tons). The unit costs of participation are $150 for labor (L) and $1,000 for capital (K). Conclude least cost amalgamation of L and K when output is produced at the rate of 1,000 tons per day. Conclude the necessary outlay for 1,000 tons / day?
Assuming that the Hawaiian Sea Salt Company is able to charge different prices in the two markets, what are the profit maximizing prices and output levels for sea salt in the two markets?
With the decrease in demand for bridge and tunnel crossings, what is the optimal way to adjust tolls: raise tolls, lower tolls, or leave unchanged.
Presently the bond is priced to yield a return of 5% per year. Illustrate what is the bond's current market price.
Classical economists struggled with the "Water-Diamond Paradox" which seeks an explanation for why water (which is very useful) has a low price, whereas diamonds (which are not particularly important to life) have a high price.
According to the rule of most favorable input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the corporation.
Explain effect of an open market purchase on interest rates. Make sure you discuss liquidity effect, real income effect, price level effect and inflationary expectations effect.
Illustrate what will be the effect on the level of checkable deposits.
Elucidate why is productivity related to the standard of living. In your answer be sure to explain what productivity and standard of living mean. Make a list of things that determine labor productivity.
Which policy do you believe would be more effective in the short term for accomplishing these goals.
q1. connie and stephen must decide how to split a pie. suppose both of them simultaneously formulate demands x and y.
Explain why would elasticity of demand be important to you in determining the products on which the taxes should be levied.
Compare murder rates with and without death penalty. Cross-section of states: is murder rate higher on average in states without executions.
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