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1. What are the two most important things people consider when they make economic choices?
2. How does getting something for free impact how individuals may value that item?
From Henry Hazlitt’s Economics in One Lesson Explain how the lesson applies in the following instances. Include at least one policy argument in favor of the policy and one counter-argument:
Find the equivalent equal payment series (A) using an A/G factor such that the two cash flows are equivalent at 10% compounded annually. First cash flow: Start at -$50 at year zero and goes up every year in increments of $50 so at year five its at $2..
Suppose an office supply store increased its price of file folders from $.79/box to $.99/box and the quantity demanded decreased from 85 boxes/month to 83 boxes/month. What is the price elasticity of demand for file folders? Is the demand elastic, un..
The euro has been depreciating against the $ for the past several months. The proximate cause of this depreciation is actions taken by the European Central Bank (ECB). What were those actions? Why did the ECB take those actions?
Elucidate how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves.
What is the present value now (t =0) of the total revenue if the interest rate of 17% per year? specify answer to nearest cent.
An article in Business Week warned of the dangers of deflation as the collapse of numerous Asian economies was creating worries that Asia might try to "export its way out of trouble" by oversupplying everything from automobiles to semiconductors. "Fu..
Compute the present value of a perpetuity bond that pays a monthly cash flow of $1000 at an annual interest rate of 12 percent.
Nonmarket work includes time spent
Find the amount of capital and labor that will maximize profit. Show second order conditions for the maximum.
Compared with perfect competition, quantity produced in monopolistic competition is inefficient as price is higher than marginal cost (i.e. allocative inefficiency). Why do some economists argue that even if price is higher than marginal cost, it doe..
Ten firms compete in a market to sell product X. The total sales of all firms selling the product are $2,500,000. Ranking the firms’ sales from highest to lowest, we find the top four firms’ sales to be $400,000, $325,000, $245,000, and $185,000, res..
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