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Prices in most markets are determined as a mark-up over per unit wage costs, P = (W/a) x (1+z). Explain the factors underlying this price relation, as well as the underlying cause of inflation based on these same factors.
Do these countries experience diminishing returns to physical capital per workee. And technology are held fixed in each country, can you recommend a policy to generate a doubling of real GDP per capita in Albernia. Amount of human capital per work..
Sam promises to pay Sandy $2,000 in four years and another $3,000 four years later for a loan of $2,000 from Sandy today. What is the interest rate that Sandy is getting? Assume interest is compounded monthly.
What is the typical cause of positive serial correlation in business data?
Given the following information for the Macro Economy answer the following questions. In this economy we have an MPC equal to 0.80, Autonomous Consumption equal to $800 billion and a Planned Investment equal to $200 billion. Fill in the Consumption, ..
ABC Inc. must purchase a welding machine. The following is known about the machine and about possible cash flows. p=.40 p=.30 p=.30 First cost $40,000 $40,000 $40,000 Annual savings 2,000 5,000 8,000 Annual costs 12,000 8,000 6,000 Actual salvage val..
Why did the rice price scheme exist and what was the outcome? Reasons for continued support? Winners and losers from the policy? Describe economic rent and how it is determined. What are alternative methods to support the rice farmers?
Petunia is receiving $43328.0 semi-annually (twice a year) from an annuity that pays a nominal annual rate of 5.0% compounded semi-annually. She will receive this for 15.0 years. What is the present worth of the annuity?
What is the role of money in the modern economy? How well would our economy function without money? What would the consequences be?
Economic Projections You have just been appointed the new Economic Advisor to the U.S. Government and have been asked to develop an economic series of projections for the U.S. domestic economy for the next year. Outline your new forecast based on cur..
How would that plan compare to one that requires each firm to provide a $100,000 group program that would cover all employees in the firm, no matter what the number of employees was?
Draw the complete consumption-leisure model. Be sure to label completely and correctly. Find the optimal consumption bundle.
A pair of lumberjacks can use a two-person saw to cut down 25 trees in a day. A single lumberjack using a two-person saw is unable to cut down any trees. Use the appropiate drawing tool to draw the isoquants for Q=50 trees per day and Q=100 trees per..
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