Suppose one of your Clients is four years away from retirement and only has $1500 in pre tax income to devote to either a Roth or a traditional IRA. The traditional IRA permits investors to contribute the full $1500 since contributions to these accounts are tax deductible, but they must pay taxes...

1. What fundamental economic precept is indicated in the example of Coke and East Germany? 2. What is the economic concept of utility? 3. What does the economic concept of cost mean? 4. According to what economic principle do firms operate? 5. Why are gas stations in South Africa...

(a) Compare the traditional view versus the view of Ricardian equivalence of the effects of a debt-financed tax cut on: i. national saving; ii. current consumption; iii. the real interest rate. (b) What is Ricardian equivalence? Mention and explain three reasons why Ricardian...

7. If the reserve requirement (rr) is 0.2, the currency deposit ratio, C, is 0.05 and the excess reserve ratio (e) is 0.15, what is the money multiplier? Explain why the money multiplier differs from the simple deposit multiplier in this example.

The potential output is $800 billion. The required reserves ratio is 5%. If the current real GDP is $740 billion, then the central bank would attempt to buy about $30 billion in securities. the central bank would attempt to sell about $30 billion in securities. the central bank...

Read the following article on the "Economic Triumvirate": Downloadable pdf version: The Global Elite: Economic Triumvirate, or go to http://www.newsweek.com/id/176288 Explain why these three men (the 3 bankers who are listed as the 4th, 5th, and 6th most powerful people in...

explain how a marginal product for a resource can change.

Suppose that a competitive firm has a total cost function C (q) = 450 +15q + 2q2 and a marginal cost function MC (q) =15 + 4q. If the market price is P = $115 per unit, find the level of output produced by the firm. Find the level of profit and the level of producer surplus.

Suppose a firm s production function is given by q = 2L + 2K . The firm s target level of output is 20. Suppose that the wage rate is $5 per hour whereas the rental rate is $10 per hour. Calculate the firm s cost-minimizing input combination and the corresponding minimum cost. On a diagram,...

Suppose a firm s production function is given by q = 2L + 2K. The firm s target level of output is 20. Suppose that the wage rate is $5 per hour whereas the rental rate is $10 per hour. Calculate the firm s cost-minimizing input combination and the corresponding minimum cost. On a diagram,...