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What is the relationship of marginal productivity and wage rates? How does value of productivity determine wage rate.
Why women are more likely to stay at home and take care of children than men are?
Explain with the help of graphs how the economy converges to the general equilibrium after the shock. What happens to the aggregate price level?
Suppose that the seller offers the product at a price P without a warranty. If the buyer accepts this offer, should the seller produce a good or a bad product?
Find the per worker production function. What savings rate is necessary for the economy to reach this consumption maximizing steady state?
What are core competencies of AMAZON company? What is the likely future of AMAZON if it continues on its current path?
What problem was the new doctrine of shareholder primacy thought to solve?
How do managerial economists distinguish between short and long run for business?
What assumptions are necessary for the authors' approach to be valid? What evidence do the authors provide?
In the chapter we talked about the problem of lags in discretionary fiscal policy. What does the Solana case tell us about this issue?
Suppose the cost of a box of DVD disks is $12, what would be the profit-maximizing price of one box of DVD disks?
Do you think SOX has been effective? Why or why not? Cite examples? What is stare decisis? Why is it so important to our legal system? Use examples, please.
Suppose the full-employment level of output or potential GDP is 600. What kind of problem is the economy experiencing and how big is the GDP gap?
A company bought a $65,000 construction equipment (5-year class). What is the MACRS depreciation for year 4?
Explain the process of a financial crisis - how does it usually start, and how do events then lead to the crisis spreading from Wall St to Main St?
The 10-year US Treasury notes yields 3%. If inflationary expectations for the next ten years are 2 %, what is the real rate of interest?
Explain how the two organizations differ in their ability to deal with a financial crisis like the ones in Europe in 2009-2012 or the US crisis in 2008.
What is the depreciation for year 3 if the sum of years' digits depreciation method was used?
The price elasticity of demand for a textbook sold in the United States is estimated to be -2.0. Calculate the profit-maximizing price in each market.
A 5-year MACRS class equipment that costs $50,000 sold for $15,000 after depreciating it for 3 years using MACRS. What is the amount of depreciation recapture?
Suppose the utility function for a consumer is given by U = min{X, 3Y}. Sketch 3 indifference curves for this consumer.
Compute the marginal rate of substitution. Sketch two indifference curves based on the utility function above.
Suppose two bonds (Apple Inc. and Samsung Electronics Co., Lid) are traded in the bond. Which bond has the highest expected return? Which bond is Jess risky?
Calculate the wage elasticity of labor demand when W = 5, R = 5 and Q = 4. Is labor demand inelastic or elastic with respect to the wage at this starting point.
Algebraically solve for the union's optimal wage-employment choice. Intuitively, explain why this outcome might not be pairwise efficient.