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You pay $500,000 for a house and the land that it is on. The land is valued at $195,000 and the house is valued at $305,000. You decide to demolish the house ($20,000 demolition cost) and build a go-cart track at a cost of $750,000. What is the cost basis of the go-cart track for depreciation purposes?
For a given level of inflation expectations, if the central bank increases the money supply growth rate, then in the short run
Speculate about why people in higher income groups vote for reasons that are borne out of a sense of duty rather than from economic interests.
Draw the complete consumption-leisure model. Be sure to label completely and correctly. Find the optimal consumption bundle.
Suppose now that the government reduces (t) and increases (t') so that the government budget constraint continues to hold. What will be the effects on an individual con-sumer's consumptionin present
You have just invested a one-time amount of $5,000 in a stock-based mutual fund. This fund should earn (on average) 9% per year over a long period of time. How much will your investment be worth in 35 years?
Describe in detail the mechanics of the Circular Flow model. Discuss how the government and international trade could be included in the circular flow.
If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable.
Calculate the price elasticities of demand in each market and discuss these in relation to the prices to be charged in each market.
In evaluating the accuracy of their statements, should one distinguish between (i) economist’s descriptive statements, propositions, and predictions about the world, and (ii) their statements about what policies should be adopted. Explain in detail
Economic relationships between Spain and Portugal, and Europe (England, France, Holland): Structures of dependence. Differences between Spain and England and how these difference extended to and/or influenced the development of the Spanish colonies.
Assume a bank faces a required reserve ratio of 5 percent. If a bank has $200,000 millino of checkable deposits and $15 million of total reserves, then how large are the bank's excess reserves?
A manufacturing company leases a machine for $31,000 per year. Each unit produced costs $36 in labor and $65 in materials. To break even, 21,000 units must be sold. What is the price of the product?
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