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Q. Output from a process contains 0.04 defective units. Defective units that go undetected into final assemblies cost $22 each to replace. An inspection process, which would detect and remove all defectives, can be established to test se units. However, inspector, who can test 18 units per hour, is paid $9 per hour, including fringe benefits.
Compute the net present value using the numbers provided. Assume that annual cash flows occur at the end of the year.
Illustrate what is included in determining any of measures of money supply. If spending increase is 80% and it increases by $40 billion, Explain how does that change GDP.
Illustrate wow would the existence of such insurance affect the amount of clothing that people buy. How would you evaluate this change in behavior from the standpoint of economic efficiency.
Examine the key factors affecting the demand for and the supply of a good or service
Suppose you read in the newspaper that all last week the Fed conducted purchases in open market, and that on Tuesday of last week it lowered the discount rate.
Illustrate what are the main characteristics of a perfectly competitive market that cause buyers and sellers to be price takers.
Illustrate what is the total opportunity cost of the day that Farmer Tony incurred for his spring day in the field planting wheat.
Explain how do you think higher demand has affected equilibrium wage. In which direction do you think labour supply and demand shifted.
Explain why does a newspaper dispenser open to a stack of newspaper and essentially "trusts" a consumer to take just one copy.
Explain why government regulation is or is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation.
Explain also by using graphs welfare off policy measures on consumer and producer surplus and net gain or loss to society.
If hard freeze eliminates Brazil's premium coffee crop, illustrate what will happen to the price of premium coffee.
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