What are the characteristics of money market instruments?   2) What are TIPS?   3) Who sells Treasury bills?   4) What is the bid price on a Treasury?   5) What is commercial paper?   6) What are deposits at the FED?   7) What is the rate banks charge other banks to borrow […]

Suppose that consumption is modeled as in lecture: C = c0 + c1YD   where YD = Y ? T is disposable income. Now suppose that instead of treating taxes (T) as exogenous, tax policy is conducted according to the following equation:   T = t0 + t1Y   that is, taxes depend on income. […]

Suppose you have the problem of delivering 500 lb. boxes from Washington, D.C. to Baltimore and are considering the purchase of a truck. You have in mind either a small truck (capacity of 1,500 lbs. and a cost of $2,500 a year) or a large truck (capacity of 4,000 lbs. and a cost of $10,000 […]

Assume that a company has developed a new product, or a new version of an old product that is significantly different and improved. For a while the company is the only supplier or producer of this product. What should be the pricing strategy of the firm? What factors should be taken into consideration when determining […]

Complimentary Goods Case of Wine Beer and Cheese Questions If an early frost destroys a large percentage of the grape crop in British Columbia, how would this be expected to affect the market for Canadian wine, the market for beer, a substitute good, and the market for cheese, a complementary good? Explain why GDP is […]

Weak Consumer Spending & Trade War Madness Fuel 2020 Recession Chances Review Locate an article written within the past year from one of the following sources (Harvard Business Review, Forbes, The Financial Times, The Economist, Bloomberg Businessweek, or the World Street Journal) that discusses an aspect of applied macroeconomic theory being covered throughout the specific […]

Economies of Scope and Scale What are they?  What is the key difference between an economy of scale and an economy of scope?  https://cdnapisec.kaltura.com/index.php/extwidget/preview/partner_id/956951/uiconf_id/38285871/entry_id/1_e6f88crm/embed/dynamic   One  source of growth is external growth from a merger and/or acquisition.   Often merger/acquisition are justified on the basis of the expected  benefits from ‘synergies’ created by the merger/acquisition. Economists  […]

Suppose you have the problem of delivering 500 lb. boxes from Washington, D.C. to Baltimore and are considering the purchase of a truck. You have in mind either a small truck (capacity of 1,500 lbs. and a cost of $2,500 a year) or a large truck (capacity of 4,000 lbs. and a cost of $10,000 […]

Assume that a company has developed a new product, or a new version of an old product that is significantly different and improved. For a while the company is the only supplier or producer of this product. What should be the pricing strategy of the firm? What factors should be taken into consideration when determining […]

In the Cases & Projects section at the back of Chapter 8 in your textbook, find and complete the following problems:   CP 8-6 Internal Controls   CP 8-8 Bank reconciliation and internal control   CP 8-9 Cash to monthly case expenses ratio   Be sure to complete all steps and sections of each problem […]