Bank of America lends you $500,000 to purchase a home in 201…

Bank of America lends you $500,000 to purchase a home in 2015 in which you promise to pay back over the next 30 years at a 5% interest rate. Inflation in 2015 was 1%, but in 2016 inflation unanticipatedly skyrocketed to 7%. Who benefits from the unanticipated inflation?

Suppose two countries initially start off at the same GDP pe…

Suppose two countries initially start off at the same GDP per capita in 1960. After 40 years the countries have large differences in GDP per capita in the year 2000, with one country having $10,000 more than the other country. What is the most likely reason for this large disparity in GDP per capita between the two countries?

A woman hires a personal chef (cook) at $60,000 a year for h…

A woman hires a personal chef (cook) at $60,000 a year for his services.  The two fall in love and get married, but the chef (cooking) services are still being performed with no explicit payment.  Suppose that the two divorce after 1 year of marriage, but the woman continues to hire the chef for his services at $60,000 a year.  What amount of the chef (cooking services) is added to GDP after the two divorce?

The home health nurse visits a 40-year-old breast cancer pat…

The home health nurse visits a 40-year-old breast cancer patient with metastatic breast cancer who is receiving palliative care.  The patient is experiencing pain at a level of 7.  In prioritizing activities for the visit, you would do which of the following first?

Suppose that we have two countries the United States and Jap…

Suppose that we have two countries the United States and Japan with their respective production possibility curves with two goods: computers and medical devices.  The United States’ computer intercept is 2,000,000 computers and its medical device intercept is 400,000 medical devices. The Japanese computer intercept is 1,000,000 computers and its medical device intercept is 500,000 medical devices.  If the two countries decide to engage in trade which country should produce computers?