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Why might it be hypothesized that a typical developed country is likely to have a greater relative amount of intra-industry trade than is a typical developing country? Explain.
Elucidate how an economist could use the slope of the yield curve to analyze the probability that a recession will occur and why the spread may matter.
A Technology Management graduate student bought a motorcycle for $30,000, paying a down payment of $10,000. The dealership agrees to take the bike back for $8,000 at the end of 4 years. The student’s uncle owns the dealership. If the monthly payment ..
If a consumer goes to buy an entertainment center at Best Buy for $2,000 and the mpc is .80, what will be the effect on the economy? What if the mpc really turns out to be .75? Why is there such a difference?
A company currently pays a dividend of $2 per share (D=$2). It is estimated that the company’s dividend will grow at a rate of 20% per year for t the next 2 years, then at a constant rate of 7% thereafter. The company’s stock has a beta of 1.2, the r..
A small consulting firm is only interested in hiring College graduates (denoted by S), but it does not know how many it should hire in order to be profit maximizing. Assume there is a competitive wage of $20 per hour and the production function is F(..
The following information describes the value Lori Landlord places on having her five apartment houses repainted. She values the repainting of each apartment house at a different amount depending on how badly it needs repainting. Value of new paint o..
Discuss what happens to the demand and or supply and to the equilibrium price and quantity in the market for housing as population increases and at the same time the government releases more land for housing.
When transaction costs are low enough, efficient resource allocation will follow regardless of the particular assignment of property rights. When transaction costs are high enough, efficient resource allocation requires assigning property rights to t..
Assume that private schools want to maximize profits and that the market for private schools is perfectly competitive.
A firm has estimated the following demand function for its product: Q = 8 - 2P + 0.101I + A where Q is quantity demanded per month in thousands, P is the product price, calculate values for quantity demanded, price elasticity of demand, income elasti..
Does the production technology exhibit increasing/decreasing/constant returns to scale.
Assume that the pool of utilized textbooks grows further during the second year of the latest edition
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