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Question: 1. The demand for labor by an industry is given by the curve L = 1200 - 10w, where L is the labor demanded per day and w is the wage rate. The supply curve is given by L = 20w. What is the equilibrium wage rate ...
Question: A friend convinces you that she has a great idea for a business, and the two of you incorporate. You supply her with funds and let her make all of the executive decisions. Under the agreement you hold 30 percen ...
Question: Have increases in food prices had an impact on you and your family? How much do you spend on food each week? How about each month? How does that compare with what you were spending on food each month a year ago ...
Question: In the example from the Exchange Without Production section, construct a different series of trades among the five people and show that it leads to the same equilibrium price and the same allocation of the good ...
Question: What is the Consumer Price Index (CPI), and how is it determined each month? What effect does inflation have on the purchasing power of a dollar? How does it explain differences between nominal and real interes ...
Question: Consider how the following situations would affect the economy's monetary system. a. Suppose that the people on Yap discovered an easy way to make limestone wheels. How would this development affect the usefuln ...
Question: Read the "You Be the Judge" on p. 596 of the text. It is the case of Banta Properties v. Arch Specialty Insurance. Review the facts, and the arguments of each party in the case. Discuss: 1. the main issue(s) in ...
Question: Virtually all purchases of consumer nondurable goods do not involve extended credit terms. Yet that component of GDP exhibits a very marked cyclical pattern, always turning down during recessions. Can these dec ...
Question: Describe the jobs of different types of salespeople and list the characteristics of successful salespeople; Identify a characteristic that you personally need to develop to be a successful salesperson, should y ...
Question: A Quasi-option value question: Imagine that the net present value of a hydroelectric plant with a life of 75 years is $24 million and that the net present value of a thermal electric plant with a life of 40 yea ...
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Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate
Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p
Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As
Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int
Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As