Economics

Suppose you purchase a coupon bond with 20 years to maturity for $1000. It pays

Suppose you purchase a coupon bond with 20 years to maturity for $1000. It pays coupons of $70 per year and after one year, you must sell the bond to help pay for tuition. Further…

Suppose you read a newspaper (or online) that the price of the gasoline is up AN

Suppose you read a newspaper (or online) that the price of the gasoline is up AND consumers bought more gasoline. How can laws of supply and demand explain this? A. The gasoline m…

Suppose you read in the newspaper (or online) that the price of gasoline is up a

Suppose you read in the newspaper (or online) that the price of gasoline is up and consumers bought more gasoline. How can the laws of supply and demand explain this? a. The gasol…

Suppose you receive a $1,000 gift today. If the interest rate is 7% per year, th

Suppose you receive a $1,000 gift today. If the interest rate is 7% per year, the future value of the gift one year from today will be ________ . (For simplicity, assume throughou…

Suppose you received a gift of $2000 cash on your 21st birthday. Further suppose

Suppose you received a gift of $2000 cash on your 21st birthday. Further suppose you used it to purchase a bond with no expiration date that pays annual interest of $100. a. What …

Suppose you recieve your entire yearly income of 3600 in the beginning of the ye

Suppose you recieve your entire yearly income of 3600 in the beginning of the year, and then spend it evenly over the year. Also suppose you have no other assets. Before the incom…

Suppose you run a bakery in Omaha. Business is good, you always run out of bread

Suppose you run a bakery in Omaha. Business is good, you always run out of bread each day (assume you have no market power -- that is, your supply has no influence on price). You'…

Suppose you run a pizza shop and currently have two employees. If you hire a thi

Suppose you run a pizza shop and currently have two employees. If you hire a third employee, your output of pizzas per day rises from 55 to 65. If you hire a fourth employee, outp…

Suppose you run a pizza shop and currently have two employees. If you hire a thi

Suppose you run a pizza shop and currently have two employees. If you hire a third employee, your output of pizzas per day rises from 55 to 65. If you hire a fourth employee, outp…

Suppose you send an email to your instructor to request an appointment to discus

Suppose you send an email to your instructor to request an appointment to discuss your test grade. Your instructor replies an email telling you to stop by her office at 12:30 pm t…

Suppose you serve on an environmental policy planning board for the federal gove

Suppose you serve on an environmental policy planning board for the federal government. Your task is to propose a policy initiative aimed at reducing urban air pollution, using th…

Suppose you take $1000 you keep under your mattress and deposit it in a checking

Suppose you take $1000 you keep under your mattress and deposit it in a checking account at your local bank, which has and keeps no excess reserves. (a) If the required reserve ra…

Suppose you take $200 that you had kept under your pillow and deposit it in your

Suppose you take $200 that you had kept under your pillow and deposit it in your bank account and the required reserve ratio is 10%. What is the money multiplier? What is the larg…

Suppose you take a job downturn and are looking for a single family house to buy

Suppose you take a job downturn and are looking for a single family house to buy. You find two houses whose characteristics are very similar. The house closer to downtown is selli…

Suppose you trade dollars and euros for a bank that has branches in New York and

Suppose you trade dollars and euros for a bank that has branches in New York and Frankfurt. You can electronically transfer the funds between the two branch locations at no cost, …

Suppose you visit with a financial adviser, and you are considering investing so

Suppose you visit with a financial adviser, and you are considering investing some of your wealth in one of three investment portfolios: stocks, bonds, or commodities. Your financ…

Suppose you visit with a financial adviser, and you are considering investing so

Suppose you visit with a financial adviser, and you are considering investing some of your wealth in one of three investment portfolios: stocks, bonds, or commodities. Your financ…

Suppose you visit your local casino after classes one day, and find there is a n

Suppose you visit your local casino after classes one day, and find there is a new game being offered. The game works as follows. The dealer tosses a fair coin. If it comes up hea…

Suppose you want to remove seventy sh of an exotic species that have been illega

Suppose you want to remove seventy sh of an exotic species that have been illegally introduced to a lake (e.g., piranha). You have three possible removal methods. Assume that Q1, …

Suppose you want to test the hypothesis that higher income taxes make people wor

Suppose you want to test the hypothesis that higher income taxes make people work fewer hours per year on average. The tax rate is your independent variable and hours worked per y…

Suppose you were asked to recommend changes to the UN Security Council (especial

Suppose you were asked to recommend changes to the UN Security Council (especially in permanent membership and veto power). What changes would you recommend, if any? What is your …

Suppose you were borrowing money to buy a car. Consider the folowing situations

Suppose you were borrowing money to buy a car. Consider the folowing situations Situation 1: Suppose the interest rate on your car loan is 17.00 percent and the inflation rato 16.…

Suppose you were given a choice to select from a menu of items in your employee

Suppose you were given a choice to select from a menu of items in your employee benefits package. The menu might include medical coverage ($1,500 deductable), life insurance equal…

Suppose you were having lunch withyour best friend who just enrolled in an econo

Suppose you were having lunch withyour best friend who just enrolled in an economics class. He wascomplaining about how irrelevant the class was, commenting that hesaw no useful p…

Suppose you were shopping and saw a widget you’d like to buy – but there was no

Suppose you were shopping and saw a widget you’d like to buy – but there was no price tag. After some consideration, you determined that you’d spend as much as $25 to buy the widg…

Suppose you were thinking about buying a coupon bond with a face value of $1000,

Suppose you were thinking about buying a coupon bond with a face value of $1000, an annual coupon rate of 7.5%, and a maturity for 5 years: a. If the market rate of interest is cu…

Suppose you win a small lottery and have the choice of two ways to be paid: You

Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a series of payments over time. If you pick the lump sum, …

Suppose you win a small lottery and have the choice of two ways to be paid: You

Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a series of payments over time. If you pick the lump sum, …

Suppose you win on a scratch-off lottery ticket and you decide to put all of you

Suppose you win on a scratch-off lottery ticket and you decide to put all of your $3,500 winnings in the bank. The reserve requirement is 10%. How much maximum of new money will b…

Suppose you win on a scratch-off lottery ticket and you decide to put all of you

Suppose you win on a scratch-off lottery ticket and you decide to put all of your $2,500 winnings in the bank. The reserve requirement is 5%. What is the maximum possible increase…

Suppose you win on a scratch-off lottery ticket and you decide to put all of you

Suppose you win on a scratch-off lottery ticket and you decide to put all of your $2,500 winnings in the bank. The reserve requirement is 10%. How much maximum of new money will b…

Suppose you wish to sell your old car. The car is worthless to you, but you expe

Suppose you wish to sell your old car. The car is worthless to you, but you expect it will sell for $1000 if you aggressively advertise. You spend $500 on advertisement in a local…

Suppose you withdraw $1,000 in cash from your savings account. How does this act

Suppose you withdraw $1,000 in cash from your savings account. How does this action affect the M1 and M2 money supplies? Question 5 options: A) M1 and M2 are both unchanged. B) M1…

Suppose you work as an economic consultant in a company which is producing an in

Suppose you work as an economic consultant in a company which is producing an intermediate good and has monopoly power (manufacturer). They use a retailer (who also is a monopolis…

Suppose you work for an investment firm in New York City. You derive utility fro

Suppose you work for an investment firm in New York City. You derive utility from consumption, as described by the utility function U(C). where C denotes consumption and U(middot)…

Suppose you work for an original equipment manufacturer (OEM) who makes componen

Suppose you work for an original equipment manufacturer (OEM) who makes component pieces for a telecommunications company. The telecom company asks you for a price quote for 2,000…

Suppose you\'ll have an annual nominal income of $65,000 for each of the next 3

Suppose you'll have an annual nominal income of $65,000 for each of the next 3 years, and the inflation rate is 5 percent per year (Hint Use the following formula): lo / (1 + n wh…

Suppose you\'re planning a vacation to London and are trying to find an inexpens

Suppose you're planning a vacation to London and are trying to find an inexpensive airplane ticket online. You see that Independence Airline (an American airline) offers a round-t…

Suppose you\'ve just Inherited $10,000 from a relative. You\'re trying to decide

Suppose you've just Inherited $10,000 from a relative. You're trying to decide whether to put the $10,000 In a non-Interest-bearing checking account so that you can use It wheneve…

Suppose your annual income in 2014 was $150,000. Using 2013 as the base year, ca

Suppose your annual income in 2014 was $150,000. Using 2013 as the base year, calculate your real 2014 income measured in 2013 dollars if the CPI is 105 in 2014. Calculate the off…

Suppose your candidate wins and the policy is enacted. Draw the change this poli

Suppose your candidate wins and the policy is enacted. Draw the change this policy will cause, also on the graph above. Problem Four: Fill in the blanks and circle the options tha…

Suppose your company is considering three health insurance policies. The first p

Suppose your company is considering three health insurance policies. The first policy requires no tests and covers all preexisting illnesses. The second policy requires that all c…

Suppose your company is considering three health insurance policies. The first p

Suppose your company is considering three health insurance policies. The first policy requires no tests and covers all preexisting illnesses. The second policy requires that all c…

Suppose your employer offers you a choice between a $5,800 bonus and 400 shares

Suppose your employer offers you a choice between a $5,800 bonus and 400 shares of the company stock. Whichever one you choose will be awarded today. The stock is currently tradin…

Suppose your engle curve for X is given by the equation: X=a+bI, where I is inco

Suppose your engle curve for X is given by the equation: X=a+bI, where I is income and a and b are constants. A. If you income increases from I to I+delta I, by how much does X in…

Suppose your firm is seeking a six-year, amortizing $700,000 loan with annual pa

Suppose your firm is seeking a six-year, amortizing $700,000 loan with annual payments and your bank is offering you the choice between a $740,000 loan with a $40,000 compensating…

Suppose your firm makes a commitment to shareholders to reduce greenhouse gases

Suppose your firm makes a commitment to shareholders to reduce greenhouse gases by 10 tons per year. One possibility is to pay for a reforestation project that offsets your pollut…

Suppose your firm\'s long-run total cost function (in a perfectly competitive ma

Suppose your firm's long-run total cost function (in a perfectly competitive market) is given by: C(q) = 12 + 3q2-2q. 6. a. b. c. What is the firm's average cost function? What is…

Suppose your friend Antonio offers you the following bet: He will flip a coin an

Suppose your friend Antonio offers you the following bet: He will flip a coin and pay you $2,000 if it lands heads up and collect $2,000 from you if it lands tails up. Currently, …

Suppose your friend was earning 22,000 a year as a sales representative for a T-

Suppose your friend was earning 22,000 a year as a sales representative for a T-shirt manufacturer. At some point she decided to open a retail store of her own to sell T-shirts. S…