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Explain the difference between the incentives of the owner of a house and renter of a house to undertake expenditures designed to improve or maintain the house. For example, are renters more likely to replace light bulbs or wall-to-wall carpets when they wear out? When renters spend funds on a new bookcase, is it likely to be built-in or portable? What are the parallels between incentives here and the incentives of Congress when it comes to current expenditures versus capital expenditures?
If velocity is unchanged and the money supply grows by 13% and the real GDP grows by 4%, what is the rate of inflation?
Compute the coefficient of price elasticity for the price ranges given in the schedule and complete the first column of the table. What do you notice about the algebraic sign of the values you have just computed? Why is this so?
You can lease the similar piece of equipment, delivered and installed, for an all-in cost of $65,000 per year, for three years, payable at the beginning of each year.
The Optimal Scam Corporation would like to see its sales grow at 20% for the foreseeable future. Its financial statements for the current year are presented below.
Show the results of a Fiscal Policy action that will bring this economy to full employment level of Real GDP. Explain the effect on the fiscal budget and show the effect on the Money Market and the Investment Market.
It is well documented that carbon monoxide emissions from combustible engines increase in colder climates. This implies that associated damages are expected to become less severe in summer months than in winter.
Explain how might knowing this affect you as the manager of a large firm.
Both Market A and B have the same demand curve of Qd = 400 - 20 Pd where Pd is the price customers pay and Qd is the quantity demanded.
Suppose US and Russia produce only two goods meat and potatoes in a week's time according to the table below which shows their production possibilities. Meats(lbs) Potatoes (lbs) Who has absolute advantage in each product? Who has comparative..
what conditions might the Justice Department approve a merger between two companies that operate in an industry with a premerger of Herfindahl-Hirschman index of $2,900 if the post merger index is expected to increase by $225?
Draw a set of indifference curves for Jones, and second set for Smith, with alcoholic drinks on vertical axis and non-alcoholic on the horizontal axis.
Elucidate each auto industry structure correctly. provide an analysis of market structure requirements including number of firms, uniformity of products.
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