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Should an organization create its budget first and then design its strategic plan based upon projected numbers or should the organization create its strategic plan first and then create its budget? WHY?
Identify and discuss at least two economic phenomena for which the linear-in-parameters/linear-in-variables regression model may not be appropriate. Select an economic phenomenon and determine which of the models discussed in this chapter would be mo..
How much Medicare Tax did she pay? What is her marginal tax rateon her federal personal income tax? Details are related to the U.S.
What is meant by "risk premium". Risk premiums on corporate bonds are usually anticyclical; that is, they decrease during business cycle expansions and increase during recessions. Why is this so.
Explain the marginal productivity equalization test and discuss the role of the total factor productivity (the parameter A in the production function) to solve the seeming puzzle presented in the data. How big are these productivity cross-country ..
Suppose that in 1990, the price of bread was $2 per loaf and the price of milk was $1 per gallon. By 2000, the price of brad rises to $3 per loaf, and the price of milk rises to $2 per gallon. Assume that consumers have convex indifference curves, an..
You and your roommate are in a tough position. Both of you value a clean apartment at 100, and a dirty apartment at 30. The total cost of cleaning the apartment is 80. Layout this situation as a simultaneous move game. What is the equilibrium?
In terms of the shareholder wealth maximization model, if the expected future profits of a firm are cut in half, what should happen to the share price?
Which of the following is not an explanation for stagflation? Stabilization policies and FED intervention created an inflationary bias over time, which required higer rates of unemploymentto retsrain inflation.
Suppose you are given the following Total Product Function: ,where Q is total output or units produces; K, capital; L, labor; and M, materials.; that is, this is a input factor production function. Find the Marginal products of capital, labor, and ma..
How would you make a convincing case that open trade in goods and services as well as free flow of foreign direct investment will enhance the well-being of (a) consumers, (b) producers, and (c) the government of countries? Give specific examples to p..
Is the selection process for determining members of the National Labor Relations Board too politicized? Explain your response. Does the current selection process lead to instability in interpretations of the LMRA and is so, is this a positive or nega..
A price taking firm chooses its inputs to maximize short-run profits. Its Cobb-Douglass production function has the following form: q(L, K) = L ^(1/2)K^(1/3) . The output price is 1,000 per unit and the cost of each unit of input is 10. In the short-..
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