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Which of the following transactions would be recorded as a credit in the U.S. current account?
1. An American Tourist's payment to a Japanese Hotel
2. A Japanese consumer's purchase of a computer made in USA and purchased in USA
3. A Japanese Bank's purchase of IBM Stock (IBM is an American Owned firm)
4. An American consumer's purchase of Japanese made VCR
5. A German citizen receives a $50 dividend check on shares of stock she owns in a US corporation.
The production function for Our Production is Q = 25L – 0.05L2 ; where Q is output and L man–hours. (i) What level of man–hours will maximize total output? (ii) Calculate the marginal product for the following levels of man–hours: 25, 50, 100, 150, 2..
Why does equilibrium real GDP occur where C + Ig = GDP in a private closed economy? What happens to real GDP when C + Ig exceed GDP? When C + Ig is less than GDP? What two expenditure components of real GDP are purposely excluded in a private closed ..
Abdi’s incomes in periods 1 and 2 are $200 and $100 respectively. His preferences for consumption in the two periods are perfect complement. That is, for each dollar he spends in one period, he wants to spend the same amount in other period. What is ..
RC Cola is considering marketing a new, fruit flavored soft drink. It hires Mark-D Design to develop the can logo and design. RC calculates that a good design raises can sales and is worth $.75 million to them. Ex-ante, what is Mark-D’s expected prof..
Assume that marginal utility of good A is 4 times the marginal utility of good b. The firm can compute all points on its total cost curve if it knows.
Imagine that you are a financial manager researching investments for your client that align with its investment goals. Use the Internet or the Strayer Library to research any U.S. publicly traded company that you may consider as an investment oppo..
Draw the US demand and supply curves for oil and indicate how much is imported in barrels of oil and its value per year.
In the Keynesian-cross model, an increase in the real interest rate shifts the expenditure line _____ and short-run equilibrium output _____.
Why does the aggregate demand (AD) curve slope downward to the right? What can cause the curve to shift? Why does the short run aggregate supply (SAS) curve slope upward to the right? What can cause the curve to shift?
Suppose a computer virus disables the nation’s automatic teller machines, making withdrawals from bank accounts less convenient. As a result, people want to keep more cash on hand, increasing the demand for money. Assume the Fed does not change the m..
Find out the Nash equilibrium cost for the two diners. How many breakfast club memberships will each diner sell in Nash equilibrium.
Assume a perfectly competitive firm is currently producing 5,000 units of output and is earning $15,000 in total revenue. The marginal cost of the 5,000th unit of output is $3. The corresponding average total cost is $3.50 and total fixed costs equal..
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