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(Investment) In national income accounting, one component of investment is net changes in inventories. Last year's inventories are subtracted from this year's inventories to obtain a net change. Explain why net inventory increases are counted as part of GDP. Also, discuss why it is not sufficient to measure the level of inventories only for the current year. (Remember the difference between stocks and flows.)
It has been hypothesized that overall success for college freshmen as measured by grade point average (GPA) is a function of IQ scores (X1), hours spent studying each week (X2), and one's high school average (X3). Suppose the regression equation i..
You are a manager of a firm with a following demand and cost functions in a perfectly competitive market. The price in your market is $35. Your total cost curve is: TC = 10 + 2Q + 0.5Q^2
Suppose the change had halved, rather than doubled, the firm's depreciation expense. Now, what would be the impact on net income, total profit margin, and cash flow?
What happens when the Fed monetizes a budget deficit? Is this something it should always try to do? ( Hint: Outline the benefits and costs of such a policy over time.)
in 1984 walt disney brought in michael eisner a paramount executive as ceo. the firms board of directors agreed to pay
The purchase price of a natural gas- fired commercial boiler (capacity X) was $181,000 eight years ago. Another boiler of the same basic design, except with capacity 1.42X, is currently being considered for purchase. If it is purchased, some optio..
what is the maximum loan that the bank could extend. indicate how the banks balance sheet would be altered if it extended this loan. suppose that the required reserves were 20 percent. if this were the case, would the bank be in a position to extend..
What types of strategies and actions could the board of directors initiate which could have changed the outcome?
Do you think these phenomena are related? Could higher wages and better job opportunities lead to a more capital-intensive way of performing household chores? Explain.
The state highway route has a 30% chance of taking 4 hours, a 50% chance of taking 5 hours, and a 20% chance of taking 6 hours. All other factors being the same, people who place a higher valueon time.
which way do we shift the demand curve? Why?
A household's decision about what quantity of an output or product to demand depends on a number of factors. List them.
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