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Consider a situation in which you invest 7000 SR per year for 7 year in a bank account that has an annual interest rate of 10%. What will be the future value of your investment?
Draw the intertemporal budget constraint. Be sure to label the axes, endowment point and the absolute value of the slope. Suppose that the individual’s interest income is taxed at 25% in both periods, and that interest payments are deductible at 25%...
Do you agree with Seligman's position on the importance of Well-being? Do you agree that PERMA is what will make you happy?
Suppose that Mexican investors decide to pour money (invest) into the US fracking industry. Assume that the US and Mexico have floating currency regimes. Graph the US and HOME starting with BOP=0 at e1. Next, explain and show on the graph the changes..
The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase: “There were nearly four million fewer riders in December 1995, the first full month after the price of a token increased 25 cents to $1.50, than in the ..
If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development? What conditions would encourage research and development in competitive ..
In the Solow growth model, a higher savings rate is a good way to get higher GDP and higher GDP growth. The Solow growth model tells us that a flood of immigrants will, in the long run, raise interest rates and reduce wages. In world in which absolut..
Why do some economists worry so much about monopoly – in what ways do they believe that monopoly is inferior to perfect competition? What is it that convinces other economists that monopoly actually isn’t all that much of a problem? (Here are some qu..
Percy’s “The Loss of the Creature” provides a rather provocative way to end a semester of reading, writing and thinking about education. Write a 4-5 page essay in which you consider Percy’s ideas as they apply to a student living in a developed cultu..
A consumer has preferences represented by the utility function U(x1, x2) = ln x1 + x2 . Denote prices and income by p1, p2 and I respectively. Write the utility maximization problem and get the first order conditions. Solve the system of equations an..
A wave of day laborers with experience in home construction moves into the area. Will this shift the labor supply curve, demand curve or both in home construction.
Explain the following concepts: demand schedule, demand curve, supply schedule, supply curve. Then, list the determinants of demand and explain how a change in each determinant affects the demand curve. Do the same for the supply.
q.suppose sam.com sell 3500 books on account for 11 each cost these book is 16500 on october 10 2012. one hundred of
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