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The Townsville City Council is considering a proposal by the mayor to construct a recreational facility at a cost of $1.0 million. The facility is expected to have a useful life of 30 years during which operating costs are expected to average $100,000 per year. It is anticipated that one-time renovations costing $500,000 will be carried out after 18 years. Overall benefits to the community are expected to average $220,000 per year. The facility will have no salvage value. Assuming an interest rate of 5% per year, determine the benefit-cost ratio for the proposed facility. Should the Council approve the proposal?
Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
Explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy when promoting economic activity.
Companies are interested in acquiring other firms even when the latter operate in totally unrelated realms of business. For instancce, Highways Industries manufacturing asphalt materials for road construction, acquired VIP Transport Ltd
Analyze the forms of aid to developing nations and determine which have the greatest and least amount of impact on a country during a natural disaster.
A state meat inspector in Iowa has been given the assignment of estimating the mean net weight of packages of ground chuck labeled "3 pounds.
Assume the U.S. government implements a policy that achieves the savings rate needed to achieve the golden rule level of capital.
Given current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the U.S. is 500.
q.for each of the following values for the mpc determine the size of the simple spending multiplier and the total
Disposable personal income equals personal income and two factors are the keys to determining labour productivity
q.suppose the demand function for corn is qd10-2 and supply function is qs3p-5. the government is concerned that the
Explain how much should firm produce in order to maximize profit. Illustrate what is maximum profit that firm can generate at output level (your answer in a).
We are all familiar with fluctuating prices of gasoline at the pump. Explain why does this happen.
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