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Kay Evans just completed her B.S. degree and is considering pursuing doctoral (Ph.D.) studies in economics. If Kay takes a job immediately a job after graduation, she can earn $35,000 during the first year, with an anticipated raise of $4,000 per year over the next five years. If Kay pursues the doctorate, five more years of school are required. Kay has been offered an assistantship paying $9,500 per year plus tuition. Books and computer purchases needed for her study will cost an average of $1,500 per year. These costs will not be incurred if Kay takes a job immediately. Upon graduation, Kay expects an annual income level of $55,000 during her first year of teaching. The growth rate in Kay s teaching salary is expected to equal the growth rate of the income she would make if she did not pursue the Ph.D. How should Kay evaluate her decision to pursue a Ph.D.? What other information do you need? What factors other than salary should be considered?
Suppose that last year the equilibrium price and the quantity of good X were $20 and $10 million pounds. Because of strong demand this year equilibrium price and quantity of good X are $30 and 15 million pounds. Assuming that the supply curve of g..
Explain why would you expect inflation rate to increase if the actual unemployment rate refused to a level lower than the "full employment" unemployment rate.
You're the manager of a paper mill and have been subpoenaed to appear before a joint session of the Senate Consumer Affairs and the Senate Environmental subcommittees.
Describe your understanding of what makes a cost or factor relevant to economic reasoning.
Calculate the multifactor productivity figures for labor and capital together. Elucidate why these figures might be greater in the subsidiary.
Use the following data for a pure monopoly to calculate the firm's-its profit-maximizing output level and produce price;
Audio engineer quit job & gave up salary of $175,000 per year to start own business. Partial income statement listed below:
Calculate the growth rate of real GDP for each year from 1994 to 1997 and calculate the average annual growth rate of real GDP for the period from 1994 to 1997.
Illustrate what did classical economists assume about the flexibility. What disagreements did Keynes have with classical economists.
Glassworks and Clearsmooth compete in the local market for windshield repairs. The market size (total available profits) is $10 million per year. Each firm can choose whether to advertise on local television.
Illustrate what market did Microsoft have a monopoly in the late 1990s. What technological advances threatened that monopoly.
GDP per capita in a nation like Switzerland can have a low GDP per capita also still have a high standard of living.
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