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Leasing Residuals In the late 1990's, care leasing was very popular in the United States. A customer would lease a car from the manufacturer for a set term, usually two years, and then have the option of keeping the care. If the customer decided to keep the car, the customer would pay a price to the manufacturer, the "residual value", computed as 60% of the new care price. The manufacturer would then sell the returned cars at auction. In 1999, the manufacturer lost an average of $480 on each returned car (the auction price was on average, $480 less than the residual value). a. Why was the manufacturer losing money on this program? b. What should the manufacturer do to stop losing money?
A concrete and building materials company is trying to bring the company funded portion of its employee retirement fund into compliance with HB-301.
The university bookstores received 4 million euros from students in exchange for the books. Illustrate what is the total contribution to GDP from the above events.
What asymetric Information can contribute to the onset of both a currency and financial crisis.
In this forum we discuss the different arguments that are made in favor of international trade protectionism and the important role of the politics of protectionism.
Explain why would the increase in GDP be greater than the increase of a $100 increase in government spending.
Illustrate what output level would a perfectly competitive firm produce.
Elucidate how a profit from selling the drug. This is, in part, due to the fact to the company spent $1.2 billion developing the drug also obtaining FDA approval.
If the tax multiplier is -1.5 and a $200 billion tax increase is implemented, what is the change in GDP, holding everything else constant?
A ‘linear deprecation' is characterized by a loss in value by constant amounts per year. Why might calculated depreciation rates not reflect ‘true' depreciation.
Describe the point at which diminishing returns occurs. indicate the points that delineate the 3 stages of production.
the average price level is $4 per unit also the quantity of money. Illustrate what happens to velocity if the average price level falls to $2 per unit, the money delivery is $2000 also real GDP is 4,000 units.
Select a USA from the Index also bring in additional source material to Explicate its ranking also Explain how it has changed over the last 5-10 years.
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