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Tomas quit his job at the Tri-City bank where he earned $50,000 a year to start his own businesses, a bank marketing company. He estimates his entrepreneurial talent or forgone entrepreneurial income to be $5,000 a year. He used $100,000 in savings that earned 5 percent interest annually to finance the new business. In the first year, the firm earned revenue of $250,000. The costs for rent, supplies, and an employee’s salary were $200,000. What was the accounting profit for the new business? What was the economic profit (or loss)? Explain your calculations for both questions.
Illustrate now have to lend out how much does this bank if it decides to hold only required reserves.
Sally and Joe recently graduated from college, both majoring in history. Joe took a prestigious job as a legal clerk. Sally took a job as a specialist in fighting forest fires. Both received additional training before entering their jobs. Who will li..
How does government implementation of Keynesian fiscal policy seek to reduce fluctuations in the business cycle, and how does this view differ from economic thought prior to the Great Depression?
If the CPI was 110 last year and is 121 this year, what is this year’s rate of inflation? In contrast, suppose that the CPI was 110 last year and 108 this year. What is this year’s rate of inflation? What term do economics use to describe this second..
Indicate how each of the following factors will change the individual demand curve for aspirin tablets: An increase in the price of bottle water (a complement)
In a brief 250 essay Access the website for the Consumer Product Safety Commission (CPSC) and review the functions and responsibilities of the CPSC. Present a reasoned argument as to whether the public would be better served by a "free market" approa..
The right to vote of women is easily one of the greatest victories of Progressive reformers. Since women represented just over 50% of the population, it's fair to say that until women gained the right to vote the United States was not a truly a democ..
Toby is indifferent between the bundles (9, 3) and (5, 5). When Toby is at (9, 3), he would be willing to give up one unit of y if he were to receive two units of x. If Toby is at (5, 5), he would be willing to give up four units of x if he were to r..
Suppose economy starts with GDP at potential, the real interest rate and marginal product of capital both equal to 3% ad a stable inflation rate of 2%. Analyze the effect of this shock in IS/MP diagram. What policy response would you recommend to fed..
Find internal rate of return to nearest whole percentage point. Oak Furnishings is considering a project that has an up-front cost.
In a single year, the Netherlands can raise 100 tons of beef or produce 1,000 boxes of tulips. In the same growing season, Belgium can raise 50 tons of beef or produce 750 boxes of tulips.
Read the article, “The Ethics Of Big Data”. Based on the content presented in the article, describe the microeconomic principles being used, in other words what is the impact for demand? List the different types of market structures that big data ben..
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