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a. What is net income?
b. Why is net income called the bottom line?
c. What is the difference between net income and cash flow?
d. Is financial condition more closely related to net income or to cash flow?
Chad's income went from $1000 per week to $1500 per week.As a result he increased his consumption of steak from 1 pound aweek to 3 pounds a week. Based on his consumption patterns,what is the income elasticity of steak for Chad.
The cost associated with maintaining rural highways follows a predictable pattern. There are usually no costs for the first three years, but maintenance is required for restriping, weed control, light replacement, shoulder repairs, etc.
Do you agree? Why, or why not? Would you agree with a qualified version of George's claim? If so, what qualifications would you add?
How would you evaluate these two contrasting views, and what are their implications for society?
Seth could consume $120 next year if he saved all his current earnings. He expects to earn nothing next year. The intertemporal budget constraint for Seth is given by the equation C2 = 120 - 1.2C1 where C1 = possible consumption in year 1 and C2 =..
Calculate the short run supply curve for a representative firm as a function of price
Rewrite the model to show that this is in fact a two-variable model rather than a three-variable model. Define the parameters
Do you agree or disagree with the statement that: "A monopolist always changes the highest possible price Why can't an individual from a firm raise it's price by reducing output or lower its price to increase sales volume in a purely competive mar..
Assume that before receiving the discount loan, FNB has no excess reserves. What is the maximum amount of this $10 million that FNB can lend out c. What is the maximum total increase in the money supply that can result from the Fed's discount loan
An agency is having problems with personal phone calls made during working hours. Each minute of a personal call costs the agency $0.50 in wasted wages. The agency decides to hire operators to monitor calls in order to attain the optimal number of..
A company is going to upgrade it machinery. It costs $150,000 to buy the machinery and have it installed. Operation and maintenance cost are $1500 per year for the first 3 years and then increase by $500 per year for the machine's 10-year salvage ..
Consider the demand and supply curves for rental apartments: Qd= 1000 - P, Qs=P - 100. Assume that the government imposes a price ceiling on rental apartments of 400. In this situation the deadweight loss is equal to
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