The opportunity cost of leisure is

A small building contractor has recently experienced two successive years in which work opportunities exceeded the firm’s capacity. The contractor must now decide on the capacity for next year. Estimated profits under each of the two possible states of nature are shown in the table below.  Alternative          Next year’s demand is LOW       Next year’s demand is HighDo nothing                              $ 500                                          $ 950Expand                                    $ 700                                           $ 800Subcontract                            $ 400                                          $ 700 What alternative should be selected if the decision criterion is Minimax Regret?

The table below shows 4 months of demand for ABC company.            Month                          March      April        May      June         Actual demand              7             10           11           13     L(t) =(alpha)*A(t) + (1-alpha)*[ L(t-1) + T(t-1) ]      T(t) =(beta)*[ L(t)-L(t-1)]+(1-beta)*T(t-1)    F(t) = L(t-1) + T(t-1)  and  F(t+n) = L(t) + n*T(t) Suppose L4=13  and T4=5. Forecast of October’s demand using Holt’s method with alpha =0.2 and beta =0.4.

If a firm finds that the wage rate (W) is less than the marginal revenue product (MRP), then to maximize its profit the firm should hire

Suppose a college student obtained a $8,000 student loan in 2020. She paid off the loan with $8,500 (including interest) in 2021 (that is, one year later). The consumer price index in 2020 was 300 and was 315 in 2021. As a result, the real interest rate on the loan is [value]%. Just a enter value. Do not include the “%” Round your final answer two decimal points. For example, 123.45 or 20.20. For values less than zero, use a minus sign “-“.

Assume the following conditions exist: a.   All banks are fully loaned up, there are no excess reserves, and desired excess reserves are always zero.b.  The money multiplier is 10.c.  At a 3% interest rate, investment $120 billion. At a 4% interest rate, investment $80 billion. At a 5% interest rate, investment is $30 billion. d.  The investment multiplier is 5.e.  The initial equilibrium level of real GDP is $10 trillion.f.   The equilibrium rate of interest is 4 percent. Now the Federal Reserve determines there is an recessionary gap. It changes the money supply, which in turn changes the market rate of interest by 1 percentage point. As a result, the new amount of real GDP is $[value] trillion. Just enter a value. Round your final answer two decimal points. For example, 123.45 or 20.20.

Hoosier Bank     Assets Liabilities Total Reserves $25,000 Checkable Deposits $100,000 Required Reserves $20,000 Excess Reserves $5,000 Loans $75,000 Suppose $20,000 in new deposits is received by the bank in the above table. If there were no other changes in the balance sheet, then the bank would be in a position to make new loans in the amount of $[value]. Just enter a value. Do not enter the “$” sign. For values grater than 999, include a comma “,” .  For example, 12,345.

Which of the following active fiscal policies should be pursued when actual real GDP is less than potential real GDP? An  

Using the loanable funds model, if business productivity decreases, then the equilibrium interest rate [value1] and the equilibrium level of investment [value2].

Labor(workers) Output(gallons of gasoline) 0 0 1 100 2 180 3 240 4 280 5 300 Sari’s Gas Station is a firm operating in a perfectly competitive industry. Sari’s Gas Station sells each gallon of gas for $5. As a result the marginal revenue product from hiring the fourth worker is $[value]. Just enter a value. Do not include the “$”sign.