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Suppose the government spends more on building new infrastructure. Assume that the new infrastructure projects are useful and make the economy more efficient. What is the effect on the long-run level
"Anjali and Sanu are married, and Sanu is the breadwinner. Anjali provides 4 non-market hours of service daily, and her productivity at home is $15. Sanu's earnings are $20/hour, and his productivity
Suppose two parties agree that the expected inflation rate for the next year is 3%. Based on this, they enter into a loan agreement where the nominal interest rate to be charged is 7%. If inflation fo
Suppose you purchase a 3-year, 5-percent coupon bond at par and hold it for two years. During that time, the interest rate falls to 4%. Calculate your annual holding period return. Assume that the cou
If the price of a one bedroom apartment in Washington DC is currently $1000.00 per month is there a shortage or surplus of apartments if the equilibrium point is price $1100.00 and quantity of apartme
If the price elasticity of demand is 2 in absolute value, then when the price of a good x rises 25% the correct answer is the greater demand of good falls by 50%. Can you explain how they got thi
If the elasticity of demand for spring break packages to cancun is -5 and if you notice that this year in cancun the quantity packages demanded increased by 10% then what happened to the price of canc
The value of a home depends in part on how attractive other homes and yards in the neighborhood are. How do local zoning ordinances try to promote land uses that generate external benefits for neighbo
If an alternative has monthly payments of $10,000 a month for three years with a purchase price of $75,000 at the end of year three, what would the cash flow diagram look like?
Suppose the price of the good is initially $100. What is the price elasticity of demand at this point? (Hint: What happens to the quantity demanded when the price drops by 10%?)
Suppose an individual's marginal rate of substitution is three slices of pizza for one beer at the present bundle of beer and pizza she is consuming. If the price of beer is $1.00 and the price of a s
Brad can fix the same kind of meal in 2hours, and his opportunity cost of one hour is $20. Will both Angelina and Brad be better off if Brad fixes meals for her and she pays him $45 per meal? Explain
If the input costs are rising at teh same time that consumer income is falling, what will happen to the equilibrium price and quantity?
Margaret has a project with a 28000 first cost that returns 5000 per year over its 10 year life. it has a salvage value of 3000 at the end of 10 years. if the marr i 15%, what is the annual worth of t
The federal budget: economy What is the impact of "G" policy ?
Gene Milton borrowed today a sum of $5,000 from his uncle Ben and at the end of year three paid a sum of $5,000 and paid another $1,000 at the end of year four to pay off the loan.
If the gross national debt initially is equal to $2.5 trillion and the federal government runs a deficit of $100 billion.
In today's market, Ford and Chevrolet produce small cars that are designed to compete with Korean made small cars. The American cars are slightly larger and slightly more expensive.
A company operates plants in both the unites states(where capital is relatively cheap and labor relatively expensive) and mexico(where labor is relatively cheap and capital is relatively expensive).
4. Sam consumes green eggs and ham. Ham and green eggs are both normal goods.
What discount rate is most appropriate for net present value calculations of large-scale projects? Of small projects? Of the quantity of inventories to hold?
How gold prices have spiked partially due to the fact that the Federal Reserve would consider buying more Treasury Bonds to fuel the economy. How would this affect the price of gold?
Suppose that the State Bank announces an increase in the money supply. As a result, people start to expect higher prices. What will happen to the short-run aggregate supply curve?
Distinguish between the Federal funds rate and the prime interest rate. Why is one higher than the other? Why do changes in the two rates closely track one another?
What are the positive consequences of preventing the offshoring of U.S service sector jobs,what are the negative consequences? Do these consequences change with the passege of time?