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Good People is currently selling beer for $3 per pint. The marginal cost of a pint is $.50. If we raise the price of the beer to $5, what percentage of customers must be maintained to ensure Good People at least stays even with the proposed price increase?
A boat is purchased by financing $40000. The loan is to be paid over a 5 year period with annual payments based on a 12% interest rate. Each successive payment is scheduled to be 10% greater than the previous one. Determine the size of the smallest p..
The oil price shock embodied an inflation rise of 3 percentage points and inflation turned out to be 1.5%. What effect did the financial crisis have on the unemployment rate?
Participate in a discussion with your classmates regarding how international trade affects our lives. You have a big stake in the politics of free trade versus international trade protections. As a buyer, your self-interest is hurt by tariffs and quo..
Perpetuity A pays $ 100 at the end of each year. Perpetuity B pays $ 32 at the end of each quarter. The present value of Perpetuity A is $ 1428.57. Calculate the present value of Perpetuity B using the same effective annual rate of interest.
The government wants to eliminate the inflationary gap by changing expenditures. What policy do you suggest? By how much will unemployment change after you policy has taken effect?
Suppose you own a house in Mobile, AL. Your house is currently worth $200,000. Suppose there is a 5% chance that a good destroys your house, in which case it will be worth $0. You have $50,000 in your bank account. What is the expected value of your ..
In the world of electronics overtime people realized the immense use of having a personal laptop. And at the same time the technology has improved significantly in last decade. In fact the technological improvement has surpassed the increase in willi..
Which lawyer would you sooner choose if you were on trial for a serious crime in a urban vs. a rural society. Is there a difference between the two communities? If there is tell us why there might be a difference.
Which of the following is most likely to cause variation in American household spending patterns?
Suppose we find out that a large number of individuals with advanced degrees in medicine were unable to find a job in the medical profession and are instead working at McDonald's flipping hamburgers. How would this be shown on a society's PPF graph?
If the IS curve does not shift when autonomous consumption increases by $100 MM and autonomous taxes increase by $200 MM, what can we infer about the marginal propensity to consume?
Under the factors that government spending is cut, and taxes increase. how would you argue it positively.
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