The following graph shows the supply of and demand for capital in a market over the last year. You can see that thedemand for capital has increased over the last year (the demand curve shifted to the right). Place the black X at theequilibrium interest rate and the quantity of capitalINTEREST RATE, r (%EquilibriumD21816D11412108S20 2 4 6 810 12 14 161820CAPITAL (Billions of dollars)Clear AllThe market interest rate increased by 2.0%, and the amount of capital borrowedbillion.Which of the following factors could be responsible for the change in demand shown in the graph?New technological advances opened up more production opportunities for businesses.Households began saving a greater percentage of their income.Expected inflation decreased.The Federal Reserve (the Fed) decided to relax its monetary policy and expanded the money supply.y20co

Answer - The market interest rate increased by 2.0%, and the amount of capital borrowed "…

Answered: The following graph shows the supply of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1.
You are considering the purchase of a business that is currently earning $25,000 per year in after-tax profit. If these conditions are expected to continue year after year into the future, and the interest rate is currently 10 percent, the current market value of this business is a.$2,500. b.$25,000. c.$2,500,000. d.$250,000.
Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $50,000 a year, and he pays workers $100,000 in wages. In return, he produces 250,000 baskets of peaches per year, which sell for $4.00 each. Suppose the interest rate on savings is 3 percent and that the farmer could otherwise have earned $45,000 as a shoe salesman. What is the farmer's economic profit? The peach farmer earns economic profit of $. (Enter your response as an integer.) What is the farmer's accounting profit? The peach farmer earns accounting profit of $ (Enter your response as an integer.)
Suppose that before you began your college application process, you were offered a job to work as a floor-trainer at a local fitness center, accompanied by a yearly salary of $27,000 (after taxes). Assume however that you decided to turn down this offer and instead attend a year of college. The total monetary cost of the year of college, including tuition, fees, and room and board expenses, is $43,000. You likely chose to attend college because Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
1
Suppose a firm is investing in a pollution control technology to meet a regulation in three years that can reduce its emissions for any given level of output. The technology costs $40,000 to install now, but will cost only $10,000 three years later due to expected innovations. If the firm does not comply, it will have to pay fines with the amount of $5000 in the next year, $10,000 in two years, and $15,000 in three years. With an interest rate of 3%, should the firm install this technology now or later?
A company has sold 5000 units of 100 dinars its own product at a price of per unit. If you know that the rent of the company's building for the specified financial period = 75,000 dinars, the wages of administrative staff = 50,000 dinars, and the cost of materials used in the production of the sold units = 15 dinars / unit, and the cost of work (wages of workers) in the production of units sold = 5 dinars/ unit, and the amount of depreciation for fixed assets for the financial period = 15000 dinars, and marketing expenses of units sold = 7 dinars / unit, the contribution margin per unit is? 77 73 82
1. Is scarcity of nonrenewable resources a major problem? What kinds of physical and economic measures are relevant to understanding this issue, and in what ways can some of the measures be misleading? What do you think are the main issues relating to nonrenewable use? 2. Do you expect mineral prices to continue to increase, as shown in Figure 11.4? Which factors do you think will determine future mineral prices?
Mary is a corn farmer in Iowa. If she does not irrigate his field, she can produce 120 bushels of corn per acre. If she applies 4 inches of irrigation water, she can produce 140 bushels of corn per acre. The application of 8, 12, and 16 inches of irrigation water can result in 160, 180, and 200 bushels of corn per acre, respectively. Graph the relationship between the amount of water applied and corn yield for Mary (Assume a straight-line relationship). Find and interpret the slope and Y intercept
18
Consider the figure to the right. Suppose that Q₁ = 8 acres and P₁ = $1,700 per acre. What is the dollar amount of economic rents received during the current period, and why is this amount classified as economic rents? The dollar amount of economic rents received during the current period is $ (Enter your response as a whole number.) C Price per Unit P1 E1 Q1 Quantity of Land S D E
Exercise 6 (Dark Matter Versus Return Differentials). Suppose net investment income is N II = 300, the net international investment position is N IIP = −2000, the international liability position is L = 5000, and the interest rate on international liabilities is 4 percent (r L = 0.04). Part 1: Economic consultant Jim Taylor, a strong advocate of the return differential hypothesis, maintains that the rate of return on the country’s international assets, denoted r A, is different from the return on its net international liabilities, r L. Find the value of r A consistent with Taylor’s view. Part 2: Economist Carol Powell does not support the idea of return differentials. Instead, she defends the dark matter hypothesis. Specifically, she believes that A is not accurately recorded and that the rate of return is 4 percent on both, A and L. Calculate the amount of dark matter and the ‘true’ international asset position, which we will denote T A, consistent with Powell’s view.

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