Why interest rates differ at any given time a range of interest rates prevails in the economy. what four factors contribute to differences in interest rates across consumers?

After graduation, you face a choice. You can work for a multinational consulting firm and earn a starting salary (including benefits) of $45,000, or you can start your own consulting firm using $6,000 of your own savings. If you keep your money in a savings account, you can earn an interest rate of 5 percent. You choose to start your own consulting firm. At the end of the first year, you add up all of your expenses and revenues. Your expenses include $14,000 for rent, $1,600 for office supplies, $22,000 for labor, and $4,900 for telephone expenses. After operating your consulting firm for a year, your total revenues are $102,000. Instructions: Enter your answers as a whole number. a. What is your accounting profit? $ 44,500 8 b. What is your economic profit? $ 4,150

After graduation, you face a choice. You can work for a multinational consulting firm and earn a starting salary (including benefits) of $40,000, or you can start your own consulting firm using $5,000 of your own savings. If you keep your money in a savings account, you can earn an interest rate of 7 percent. You choose to start your own consulting firm. At the end of the first year, you add up all of your expenses and revenues. Your expenses include $14,000 for rent, $1,000 for office supplies, $24,000 for labor, and $4,500 for telephone expenses. After operating your consulting firm for a year, your total revenues are $88,000. Instructions: Enter your answers as a whole number. a. What is your accounting profit? 2$ b. What is your economic profit? 2$

The diagram depicts Marco's choice of consumptions in periods 1 and 2. He has $100 worth of grain in period 1 and no income in period 2. Marco has two choices. In scheme 1, he can sell the grain that he does not consume and lend the money at 10%. In scheme 2, he can invest the grain that he does not consume (e.g. planting as seed) for a return of 50%. Which of the following statements is correct? Consumption later, $ 150 110 60 39 0 0 FF(lend at 10%) FF (invest at 50%) B 60 68 Consumption now, $ 100 Going from scheme 1 to scheme 2, the substitution and income effects have opposite effects on period 2 consumption. Marco can do better than consumption choice B by investing all of his grain and borrowing against his period 2 output. O Marco is less impatient at B than at A. Marco can do better than consumption choice B by investing all of his grain and consuming the output in period 2.

Which of the following is NOT a commitment device?   Select one:   a. A non-refundable advance payment to reserve a room at a resort.   b. A manufacturer's 2-year agreement to fix, at no cost to you, anything that breaks on your computer.   c. A pre-nuptial agreement that provides for a large penalty in the event a spouse has an affair.   d. High fines for illegal parking on campus.

include graphs/diagrams accordingly

On January 1st, 2022 every economics major at NYU had to choose one of the following two options: (a) take $10 today, (b) forgo $10 today, and get $15 on December 31st, 2022. Suppose John Doe, chose option (a), and picked up $10 on January 1st. Use this information to solve for John’s minimum discount rate. (Recall, r is the discount rate and (1 + r) is the discount factor.)    Given the information above, what do we know about the discount rate of Jane Doe if she chose option (b)?

You want to travel to Las Vegas to celebrate spring break and your "A" in your microeconomics class! You are trying to figure out if you should drive or fly. A round trip airline ticket from Riverside to Las Vegas costs $350 and flying there and back takes about 5 hours. Driving roundtrip to Las Vegas costs about $50 in gas and takes about 10 hours. Other things constant, what is the minimum amount of money that you would have to expect to make by gambling in Las Vegas to induce you as a rational individual to fly rather than drive? O $10 an hour $60 an hour O $70 an hour O $300 an hour