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Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually.
a. An initial $500 compounded for 1 year at 6%
b. An initial $500 compounded for 2 years at 6%
c. The present value of $500 due in 1 years at a discount rate of 6%
d. The present value of $500 due in 2 years at a discount rate of 6%
Anti-poverty programs
Tom gains utility from consumption C and leisure L. The most leisure she can consume in any given week is 112 hours. His wage is $20. His utility function is U(C,L) = C^3/4*L^1/4. Tom receives 640 each week from her great-grandmother. What is the mar..
Unemployment occurs even during periods when the economy is growing. An increase in wages will shift the supply curve up and to the left. A decrease in population would shift the demand curve to the left. An increase in demand will cause the equilibr..
Explain how the long run differs from the short run in pure competition. Explain how the entry and exit of firms affects resource flows and long-run profits and losses.
how should she reallocate her expenditures between the two goods
Gomez runs a small pottery firm. He hires one part-time worker at $12,000 per year, pays annual rent of $5,000. for his shop and spends $20,000. per year on materials. Gomez has $40,000 of his own funds invested in equipment (pottery wheels and kilns..
Two firms compete for consumers who have aggregate Demand x=100-2P. Both firms have constant marginal costillustrate both firms' best response functions & indicate Illustrate what the outcome is for each firms'.
What knowledge, skills, attitudes, and behaviors should an effective citizen have? Explain the connections you see among service, civic responsibility, and business? What are the business/industry implications of civic responsibility?
It is often claimed that an added benefit of pollution abatement projects sponsored by the government is the increase in employment generated by these projects. Evaluate this by answering the following. Where do governments obtain the funds to undert..
According to the Fisher equation, if a bank extends a loan for 3% and the inflation rate ends up being 5%:
Costs imposed on future users of a resource are called ... 1) Transactions costs 2) Social costs 3) Private costs 4) Depletion costs 5) User costs
The key condition for equilibrium to occur in a market is: Without taxes, the market price per bag of apples is $5. With a $2 tax per bag of apples, buyers now pay $5.75 per bag. What is the final price per bag of apples received by sellers?
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