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Annie runs a fitness center. On December 31, 2004, she bought an existing business with exercise equipment and a building worth $300,000. During her first year of operation, business was poor. She sold some of her equipment to a competitor for $100,000. What was a.Annie’s gross investment during 2005? b.Annie’s depreciation during 2005? c.Annie’s net investment during 2005? d. The value of Annie’s capital at the end of 2005?
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First, GDP is the value of all final goods produced within a country. Senekon is referring to GNP which is the value of goods owned by the citizens of the country. The distinction is important. Think of all of the environmental, health, safety, and other regulations that exist and define the parameters producers operate in. Without these, pollution would skyrocket, water would become undrinkable, and workplace accidents would be commonplace, but GDP would increase. Thus, all of these, and many more, represent the opportunity costs of maximizing GDP. Since this is a Macro class, focus on nation wide effects rather than individuals sacrificing leisure. Opportunity costs are the next best option that was sacrificed for whatever was chosen.
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an economist likes to think in terms of trade offs and opportunity cost. if you wanted to make changes to a balanced budget in any given year,what would be the opportunity cost of lowering taxes? of increasing discretionary spending?
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Agree or disagree? "..if you want to earn a large income you had better figure out how to help others (meet their needs or wants) a great deal. The opposite is also true. If you are unable and unwilling to help others (meet their needs or wants) your income will be small."
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At the start, supply and demand are both high. When the ants build the bird, they divert their efforts from food gathering, so the supply drops. At the end, the grasshoppers are defeated, so the demand drops. For #22, I would guess that unemployment would be a bigger problem. The ants no longer have to give their food up to the grasshoppers, so they don't need to produce as much food. For #23, they could shorten the work time of each ant, or set some of them on projects like better defenses so other enemies can't do what the grasshoppers did. Doing the wrong thing would probably be working the ants harder to get more food. It would result in an oversupply of food. (That's not the worst problem you can have, but some of that food will probably just spoil, meaning the ants are overworking themselves for no benefit.)
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Joan's contract with her employer requires that her pay is increased each year by a percentage equal to the rate of inflation, as calculated using the consumer price index. This is an example of: A. A COLA B. Bracket creep C. Income effect of inflation D. The real rate of interest