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1. Explain the importance of the loanable funds market to basic GDP in a macroeconomy.
2. Other things being equal, what does a lower interest rate mean for investors? What does a lower interest rate mean for savers?
Explain what Bob's "tit-for-tat strategic behavior" would be if he wished to see the game.
Which economic model do you believe is the most beneficial to YOU at the present time? Explain why
how much are households paid for providing entrepreneurial ability? $ billion for entrepreneurial ability b. If households spend $80 billion on goods and $70 billion on services, how much in revenues do businesses receive in the product market.
Sal's Pizza Shop has a unique recipe for pizza, and currently its optimal price is $20 per pizza at a quantity of 200 pizzas per week. Its marginal cost is $12 per pizza when it produces fewer than 180 pizzas per week.
A grower estimates that if he picks his apple crop now, he will obtain 1000 boxes of apples, which he can sell at $3 per box. However, he thinks his crop will increase by 120 boxes of apples for each week he delays picking, but that the price will..
The state has announced its plans to license two firms to serve a market whose demand curve is given by P = 200-Q.The cost function ofall potential firms is C = 20q,and the technology is such that once each firms output is chosen, it cannot be alt..
Motorola and other backers sank more than $5 billion in the 1990s into the development of Iridium, satellite communications systems to connect wireless telephone users anywhere on earth. Although the number of subscriber's signing up for the servi..
In some developing countries, governments are forced to support large enterprises that persistently lose substantial sums of money. Why might this cause inflation?
Discounting is examined. Suppose that individual demand for a product is given by QD=1000-5P. Marginal revenue is MR=200-0.4Q, and marginal cost is constant at $20. There are no fixed costs. a) The firm is considering a quantity discount. The firs..
If she received a bonus of $20,000 in the current year only, with all future salary payments remaining as stated earlier, by how much could this consumer increase consumption now and in the future?
Company A just paid a $3.00 dividend per share. The dividend is expected to grow at a 4% rate indefinitely. The beta of the stock of Company A is 1.5. The market risk premium is 8% and the risk-free rate is 3%. (a) What is the expected return on t..
Jen left a job paying $60,000 per year to start her own florist shop in a building she owns. The market value of the building is $150,000. She pays $40,000 per year for flowers and other supplies, and has a bank account
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