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suppose that early in a year, hurricane hots a town in Florida and destroys a substantial number of homes. A portion of this stock of housing, which had a market value of $100 million (not including the market value of the land), was uninsured . the owners of the residence spent a total of $5 million during the rest of the year to pay salvage companies to help them save remaning belongings. A small percentage of uninsured owners had sufficient resources to spend a total of $15 million during the year to pay construction companies to rebuild their homes. some were able to devote their own time, the opportunity cost of which was valued at $3million, to work on rebuilding their homes. The remaning people however, chose to sell their land at its market value the combined effect of theses houses. what was the combined effect of theses transactions on GDP for this year? (hint: which transaction took place in the market for final goods and servies?) in what ways , if any does the effect on GDP reflect a loss in welfare for theses individuals?
The number of repairs manufactured through a computer repair shop depends on the number of employees as follows:
Money is an interesting topic and there is much to learn that is not common knowledge regarding how we create money, especially money that is just printed!
Discuss completely all forward exchange transactions that take place when the contracts are made. Describe what actually takes place three months later.
Assume that an investor is risk-neutral (i.e. assume that the investor always chooses the investment with the higher expected rate of return even if it is riskier). If the yield on 1-year marketable CD's is 6% while the yield on 2-year marketable ..
What is Bill's opportunity cost of producing one hat, In which of the two activities does Mary have a comparative advantage.
Suppose you are an advisor to President Obama. Illustrate what fiscal policies would you put in place.
1. Strictly speaking, pure competition never has existed and probably never will. Then why study it 2. Why is the equality of marginal revenue and marginal cost essential for profit maximization in all market structures
Important information about Regression anaylsis. Compute the equilibrium price and quantity.
A clinic finds that by eliminating appointments it can reduce costs. The clinic is able to eliminate some telephone staff, and physicians become more productive. Patients wait until the physician is available, so there is virtually no down time. D..
What is the marginal propensity to consume. What is the slope of the consumption function (you should give a numerical answer, not a formula)?
Given that this is a training manual to sensitize employees, how will this affect any practices at the company.
(a) Write down the function that you are minimizing. (b) What are the OLS normal equations (1rst order conditions)? (c) Derive OLS estimators, b1 and b2, from the normal equations.
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