Ruben Alvarez Professor Salmon Namala Macroeconomics 201 16 May 2015 Outline Main Points 1) America the Relatively Beautiful The bow-tie-wearing president of Estonia, Toomas Hendrik Ilves, told a story in Davos about a young Estonian inventor he invited to tea in the summer of 2011 who told him he was moving to the U.S. in two weeks to make his fortune. His name is Hardi Meybaum, and he co-founded a computer-aided-design company called GrabCAD. Last fall the now-Boston-based company
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Scarcity is the limited nature of society’s resources. Economics is the study of how society manages its scarce resources. Efficiency is the property of society getting the most it can from its scarce resources. Equity is the property of distributing economic prosperity fairly among the members of society Opportunity cost is whatever must be given up to obtain some item Marginal change is a small incremental adjustment to a plan of action Market economy is an economy that allocates resources
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1) Total Revenue | $120,000 | | Salary Forgone | $50,000 | | Employee’s wages | 40,000 | | Loss on Rent | $10,000 | per year | Material Cost | 15,000 | | Lost return on savings (5%) | $ 1,000 | per year | Rental of Equipment | 5,000 | | Savings invested in business | $20,000 | | a) | | | | | | | Economic Costs | $121,000 | | | | | Accounting Costs | 60,000 | | | | | b) | | | | | | | Accounting Profit | $60,000 | | | | | C) | | |
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Chapter 1 1. (Rational Self-Interest) Discuss the impact of rational self-interest on each of the following decisions: a. Whether to attend college full time or enter the workforce full time i. Individuals will consider the benefits of attending college full time and the expected cost of doing so. A benefit of attending college full time would be that it has the potential to increase their wage or salary because of increased knowledgebase, network and skills. The expected cost
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1. Amos McCoy is currently raising corn on his 100-acre farm and earning an accounting profit of $100 per acre. However, if he raised soybeans, he could earn $200 per acre. Is he currently earning an economic profit? Why or why not? 2. Determine whether each of the following is an explicit cost or an implicit cost: a) Payments for labor purchased in the labor market b) A firm’suse of a warehouse that it owns and could rent to another firm c) The wages that owners could earn if they did not
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United States International University – Africa Group Work 630053 Kyole, Phoebe Kaluki 640633 Nainani, Tushar Prakash 634748 Njuru, Hannah Wambui 641122 Ouma, Millicent Adhiambo 637761 Zubedi, Issa Zein Said Course: FIN 3010 – Principles of Finance Schedule: Saturday 9:00AM – 12:20PM Professor: Jesse Gitahi Semester: Spring 2015 1. The table below shows the total production of a firm as the quantity of labor employed increases. The quantities of all other
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Chapter 9: Problem 4 4. The purpose of this problem is to study the sacrifice ra- tio. Suppose that initially actual and natural real GDP both equal 11,000 and that the rate of inflation is 3.5 percent. Natural real GDPgrows by 3 percent per year over the next five years. Actual real GDPdecreases by 2 percent in the first year, but then grows by 4 percent in the second year, 5.5 percent in the third year, 4.2 per- cent in the fourth year, and 3.5 percent in the fifth year. Inflation
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Open Economy Macroeconomics: The IS-LM-BP Model When we open the economy to international transactions we have to take into account the effects of trade in goods and services (i.e. items in the current account) as well as trade in assets (i.e. items in the capital account). Opening the economy to international trade in goods and services means that we have to take into account the increased demand for our goods by foreigners (our exports), as well as the decreased demand for our goods that occurs
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STAT 2606 Assignment # 3 Fall 2013 Last Name ——————————————- , Student # ———————— Lab section (Important) ———————– Due in class: Tue. Nov. 12 First ———————- Total mark=100. Marks for each question are given in [ ] Part I. Lab questions. Use only blanks left to answer lab questions. Provide all histograms you are asked to print, but DO NOT print data you are asked to generate. 1. Continuous distributions: Generate and store in column c1 10,000 values from the uniform distribution on
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UNIVERSITY OF TECHNOLOGY, JAMAICA SCHOOL OF BUSINESS ADMINSTRATION ECO 1001: INTRODUCTION TO MICROECONOMICS TUTORIAL #1 1. Which of the following is the best definition of economics? a) The study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. b) The study of how consumers spend their income. c) The study of how business firms decide what inputs to hire and what outputs to produce. d) The
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