supply) and into leisure. Problem Set 2: Suggested Solutions 2 Taxes in the Real Intertemporal Model (40 Raw Points) Taxes in the Real Intertemporal Model This problem studies the effects of a permanent (lump sum) tax decrease on macroeconomic variables such as This problem studies the effects of a permanent (lump sum) tax decrease on macroeconomic variables such as employemployment‚ output‚ consumption‚ investment‚ interest rates‚ and real wages. This problem is particularly ment‚ output
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ECP 6705 – First Problem Set Fall‚ 2014 Name or Names: (if a group of two) 1. Write a memo to UWF COB Dean Tim O’Keefe explaining why you believe offering a tuition increase for the next semester MBA students will increase total revenue (assume that he has heard of elasticity‚ but is no expert on the subject). 2. Mentone Cabins recently reduced price by 20 percent and saw volume increase by 10 percent. Should the owners reduce price further
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EC3314 – Financial Economics Fall 2013 Vinay P NUNDLALL Problem Set 1 Question 1 Explain what is meant by the following: a. A broker holding securities in street name A brokerage account where the customer’s securities and assets are held under the name of the brokerage firm‚ rather than the name of the individual who purchased the security or asset. Although the name on the certificate is not that of the individual‚ they are still listed as the real and beneficial owner and have the rights
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Text Problem Sets A1. (Bond valuation) A $1‚000 face value bond has a remaining maturity of 10 years and a required return of 9%. The bond’s coupon rate is 7.4%. What is the fair value of this bond? Number of years (N) = 10‚ future value (FV) = 1000‚ interest rate (I/YR) = 9 0.074 * 1000 = 74 = PMT or annual payment‚ I then pressed CPT on my financial calculator to compute the price of the bond and then pressed PV or present value. The fair value of the bond is $897.32. Using Cash Flow of
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Problem Set 4 1. What determines whether a financial asset is included in the M1 money supply? Why are interest-earning checkable deposits included in M1‚ whereas interest-earning savings accounts and Treasury bills are not? a. Any financial asset that can be easily changed into physical money is included in the M1 money supply. b. Because checkable deposits are easily changed into physical money‚ they are included in M1; however‚ savings accounts and Treasury bills cannot be‚ due to the fact that
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MCB 150 Lab PROBLEM SET 1 1. The data below were obtained after performance of Ex. 2 as stated in your MCB 150 lab manual. a. Estimate the number of total bacteria‚ actinomycetes‚ fungi and algae per gram (dry weight) of soil collected from the IBS garden pH: 6.0 ODW: 8.6 grams Colony Counts: PDA 10-1: 210‚ 190 AMA 10-4: 125‚ 119 SCA 10-4: 80‚ 62 10-2: 20‚ 34 10-5: 17‚ 29 10-5: 18‚ 2 Algal Medium (no. of + tubes/ no. of inoculated tubes): 10-1: 5/ 5 10-2: 5/ 5 10-3: 3/ 5 10-4:
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ZPH 123 Problem set Forces 1. Two 25.0-N weights are suspended at opposite ends of a rope that passes over a light‚ frictionless pulley. The pulley is attached to a chain that goes to the ceiling. a. What is the tension in the rope? b. What is the tension in the chain? 2. A stockroom worker pushes a box with mass 11.2 kg on a horizontal surface with constant speed of 3.50 m/s. The coefficient of kinetic friction between the box and the surface is 0.20. a. What horizontal force must be applied by
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Problem Set 1 1. (Star Wars) Real GDP = 461.0(214.5/60.6) = 1‚631.76 (E.T.) Real GDP = 399.9(214.5/96.5) = 888.90 (Titanic) Real GDP = 600.8(214.5/160.5) = 802.94 (Shrek 2) Real GDP = 437.2(214.5/188.9) = 496.45 (Avatar) Real GDP = 760.5(214.5/214.5) = 760.5 Real GDP in Order of Largest to Smallest Movies Nominal Box Office Receipts (millions) CPI in Year Released Real Box Office Receipts (millions) Star Wars (1977) 461.0 60.6 1‚631.76 E.T. The Extra-Terrestrial (1982) 399.9 96.5 888.90 Titanic
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ASSIGNMENT 1 Busn 521: Managerial Economics This assignment is due on Friday Oct 17th‚ 2014. Problem Set 2 1. Pat and Kris are roommates. They spend most of their time studying (of course)‚ but they leave some time for their favorite activities: making pizza and brewing root beer. Pat takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Kris takes 6 hours to brew a gallon of root beer and 4 hours to make a pizza. a. What is each roommate’s opportunity cost of making a pizza
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Micro Chapter 25 Practice Questions Key 1. Derived demand is the demand: A) that arises because of monopoly control of resources in a market. B) for a product based on the tastes and preferences of consumers. C) derived from consumer satisfaction with a product. D) for a resource to produce a product. Answer: D 2. Marginal revenue product is the increase in: A) total revenue from a decrease in the price of the product. B) marginal revenue from a decrease in the price of the product
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