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We know a car can be had for 60 monthly payments of $399. The dealer has set us a nominal interest rate of 4.5% compounded daily. What is the purchase price?
If the government announced that they were going to reduce the income tax next year, financed by finding a large and previously-unknown warehouse of real goods. What would happen to labor? To consumption? If the government announced they were going t..
There are several United States agencies/organizations that work together to strengthen the United States' competitiveness in the trade industry, promote trade and investment, and ensure fair trade and compliance with trade laws and agreements. Some ..
What would be the effect of sequestration in the neoclassical model? Show graphically and explain. Assume the economy starts at full employment.
What are the issues related to exchange rates - their impact on national economies when they change, their different equilibrium concepts (PPP and IP), how governments manage them (fixed or flexible or in-between)?
What price does this firm charge its customers - by what factor does this firm mark up its price over marginal cost and What happens to the optimal contract length when the marginal cost of writing a contract declines?
Why or why not? More generally, are pricing strategies such as odd pricing, price discrimination, cost-plus pricing, and two-part tariffs valid, ethical economic strategies? Why or why not?
Explain whether each of the following events represents a shift in the supply curve or a movement along the supply curve. Draw your answer. More homeowners put their houses up for sale during a real estate boom that causes house prices to rise.
Cournot duopolists face a market demand curve given by P = 120 - Q where Q is total market demand. Each firm can produce output at a constant marginal cost of 30 per unit. Find the equilibrium price and quantity for the total market.
In general terms, efficiency refers to:
(All numbers in the thousands) In May 2015, the civilian non-institutional population was 250,455. The number of employed workers was 148,795. The number of unemployed workers was 8,674. The number not in the labor force is 92,986. What was the unemp..
Assume that imports increase supply. In terms of demand, supply and consumer surplus, why would consumers prefer more imports? Adam Smith studied a pin factory and found that 1 individual doing all tasks necessary to make a pin could only make severa..
A country which does not tax cigarettes is considering the introduction of a $0.40 per pack tax. The economic advisors to the country estimate the supply and demand curves for cigarettes as: QD = 140,000 25,000P QS = 20,000 + 75,000P, where Q = daily..
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