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A total of $50,000 was available for investing in a project to reduce insider theft in an appliance warehouse. Two alternatives identified as Y and Z were under consideration. The overall rate of return on the $50,000 was determined to be 40%, with the rate of return on the $20,000 increment between Y and Z at 15%. If Z is the higher first-cost alternative, (a) what is the size of the investment required in Y and (b) what is the rate of return on Y?
Explain the two approaches that can be used to compute GDP. Why do these two approaches lead to the same value for GDP? Explain why real GDP is a more reliable estimate of economic growth than nominal GDP.
Explain why monopolistically competitive firms frequently prefer non-price competition to price competition.
Discuss the role of the FOMC and the three major policies it implements to help regulate banks. Briefly describe the equation used to measure bank reserves and the definition of the federal funds rate and their role as operating targets of the Federa..
Draw a bowed-out PPC with an aggregate measure of medical services, Q, on the horizontal axis and an aggregate measure of all other goods (and services), Z, on the structure and performance. A movement from the interior of the curve to a north-easter..
During hard times what should be done to encourage people to spend more so as to rise aggregate demand and invariably, create employment possibilities.
Adam Smith favors a policy of laissez faire in managing economic activities. Why? Economics deals with the efficient use of resources? Why? Marginal analysis tends to produce more optimal outcomes when working with scarce resources. How?
Cee Company in Canada agreed to sell 10,000 “New coffee percolators in the manufacturer’s original packaging, with standard manufacturer’s warranty,” from Schwartz, GmBH. Schwartz agrees to ship the percolators CIF, and Rousseau agrees to make paymen..
Equal annual withdrawals are to be made from the account, beginning 1 year from now and continuing forever. What is the maximum amount that she can withdraw at the end of each year?
Identify the two events that can cause a shift in the Production Possibilities curve.
Explain the unemployment rate and inflation rate for your local area and compare it to the national average. Analyze how a discouraged worker will not be represented with the unemployment rate.
find out generalized least squares estimates of the relevant function(s). Illustrate what is the profit-maximizing level of output suggested by the results in part (f).
Icahn Tackel just signed an $11.5 million, four year contract with an NFL team. He received a signing bonus of $2 million; $1.5 million at the end of year one; $3 million at the end of year two; $3.5 million at the end of year three; and 1.5 million ..
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