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What is the underground economy? How does it affect GDP calculations? Provide three examples of underground economy transactions/
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Domar properties plc have a site covering 20,000 meters square on which they wanted to build a mixed estate of 2- & 4-bedroom houses. The 2-bedroom houses will each occupy a plot of 60 meters square and will be sold at a profit of $15,000. On average..
Electric Company is considering the purchase of a hillside ranch for possible use as a windmill farm sometime in the future. The owner of the 500-acre ranch will sell for $3,000 per acre if the company will pay her in two payments - one payment now a..
Suppose that the government collects $3 million in taxes, pays $2 million in Social Security benefits, pays $0.5 million in interest on the national debt, and pays workers $1 million to sit at their desks and work as little as possible. What is the g..
Consider a small open economy in the short run where the government decreases the tax rate. What direction (+/-/or no change) does the tax decrease impact: Y, Money Demand, r, e, and C. You own a hat company which sells both domestically and abroad. ..
Risk premium is
Think of an industry that pollutes the water and has access to variable technology for reducing that pollution. Explain the impact of each of the following, other things constant, on the optimal level of water quality:
Consider the bond market. Show graphically and explain how a reduction in expected inflation would affect bond prices, quantities traded and yield.
A company has purchased equipment ( for $52000) that will reduce materials and labor costs by $12000 each year for N years. After N years, there will be no further need for the machine, and because the machine is specially designed, it will have no M..
q. consider an economy where consumers utility function is given as uclc-12l2 . where c is consumption and l is labor.
Enlighten the budgetary challenges state governments would face if the economy were to go into a recession also the unemployment rate were to increase.
Assume capital depreciates at 10 percent a year. Economy A has 1.000 units of capital while Economy B has 2,000 units of capital. Illustrate what must Gross Investments be in Each Economy to keep capital stocks Constant.
Multi part question what strategy was developed by Henry Ford to compete in car industry and in what ways did changes in the competitive environment of car industry affect GM strategy in 1980s?
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