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Category: Economics
Which of the following machines has the lowest user cost? Machine A costs $15,000 and depreciates at a 25% rate, machine B costs $10,000 and depreciates at a 20% rate, machine C costs $20,000 and depreciates at a 10% rate, and machine D costs $17,000 and depreciates at an 11% rate. The expected real interest rate is 5%. machine B Suppose the econom...
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Category: Economics
Desired national saving equals (a) Y - Cd - G. (b) Cd + Id + G. (c) I d + G. (d) Y - Id - G. A Level of difficulty: 1 4.1 2. With no inflation and a nominal interest rate (i) of .03, a person can trade off one unit of current consumption for _____ units of future consumption. (a) 0.97 (b) 1.03 (c) .03 (d) -.03 B Level of difficulty: 1 4.1 3. The de...
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Category: Economics
A storm destroys half the fava bean crop. Is this event more likely to hurt fava bean farmers if the demand for fava beans is very elastic or very inelastic? Explain.
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Category: Economics
If a fixed quantity of a good is available, and no more can be made, what is the price elasticity of supply?
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Category: Economics
What do we call a good with an income elasticity less than zero?
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