Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
So, it appears that the existence of public goods is an example of potential market failure. Write a short response, using the arguments for government provision of public goods, describing why the
If a city wants to engage in corrective taxation, how might it adjust public subsidies of various methods of urban travel?
Construct an income distribution diagram using the Lorenz Curve for the U.S. with the latest data available. Describe the extent of inequality depicted in your diagram? Describe how you would reduce
Based on grounds of utility and other distributional goals, argue why it is okay for states to use the revenue from taxes on guns and ammunition to spend on public welfare programs and to preserve n
Question: What could be done to solve California's financial crisis?
Leasing capital equipment is one of two ways for companies to conserve working capital. Explain why it might or might not make sense for a medium-sized corporation attempting to grow its business.
Suppose that nominal GDP equals $14,000 billion, the current budget deficit is $112 billion, and the government's debt-GDP ration is 20%. (a) Given that the government wishes to maintain the debt-GD
In view of the attacks on September 11, 2001, fears exist that terrorists could attempt to sabotage a country's food supply. Security related to threats to Canada's food supply is under the jurisdic
Part I: Assume that the gross national debt initially is equal to $3 trillion and the federal goverment then runs a deficit of $300 billion. 1) What is the new level of gross national debt?
What are some of the different political influences and various stakeholder interests that exist in the federal government in terms of budgeting? Why are they important to understand? How can each o
1. Using the high-low method, compute the variable and fixed cost elements. 2. If the company produces 8,000 units, estimate the total cost.
Problem 1: What is "internationalizing" the debt and how is it relevant to today's economy? Problem 2: How does internationalizing the debt reduce crowding out? Problem 3: What are the costs of intern
Suppose it is now Jan. 1, 2007, and you just sold an investment that you own for $12,500. You purchased the investment 4 years ago for $10,500. During the time you held the investment, it paid incom
Carefully explain the difference between the term "investment" as used by economists and the way it is used in everyday life. Use this to explain the major components of investment in the GDP accoun
Describe the money market and capital markets, investments, and financial management. Why is it important for people in finance to know about all of these areas, even if they work in only one area?
Say your opportunity cost (as an independent investor) of capital for an investment of this risk is 18% and that the firm offers you a 20% ownership of the company for $6 million, would you accept t
What is the slope of the Capital Asset Line (CAL) connecting the safe asset and the risky portfolio with 60% in Stock X and 40% in stock Y?
Maxwell Communications paid a dividend of $3 last year. Over the next 12 months, the dividend is expected to grow at 8 percent, which is the constant growth rate for the firm (g). The new dividend a
Show the calculation for the return on investment ratios and the return on equity ratios for both kraft foods and general mills for the 2005 and 2006 years. Compare the results.
Suppose U.S. net exports are -$400 billion and the U.S. government sector surplus is $200 billion. Then in the private sector, saving minus investment equals?
What's wrong with the following statement? If the investment demand for loanable funds rises, then the supply of loanable funds will rise, so the equilibrium market interest may rise or fall.
Problem: Classify the various categories of 'gross private domestic investment'. Explain what is meant by each briefly. (The Prof. said, " I am not referring to 'net investment' and 'depreciation' w
The required market rate of return is 15% and the risk-free rate is 7%. What is the required rate of return on the investment fund?
Problem: The expansion of the government debt could result in: A) a decline in savings. B) an increase in interest rates. C) a decline in investment. D) a reduction in the capital stock. E) all of the
Problem: Assume the required rate of return increases to 20%. The net present value of the investment would