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In the nation of Rivia the long-run macro equilibrium (LAS) is equal to $320 Billion, the current short-run macro equilibrium is equal to $280 Billion. We have also observed that for every dollar of earned income consumers spend $.80 of it.
Honest John s law firm currently charges a $500 fee per lawsuit and litigates 40 cases per month. John, the firm s president, believes that reducing the fee to $450 per case would increase the firm s caseload to 50 per month. The firm could handle..
1. How do the social benefits of alcohol use compare with its social costs?
An engineer estimates that the annual toll revenue from a newly proposed highway construction over 20 years will increase at a rate of 4%. The revenue for the first year is $2,000,000. What is the present value of the toll revenue if the state can ea..
q. 1. did you find that the items grouped together as you worked down the flow chart had similar characteristics in
Does this model of coverage afford well or poorly with the model of demand for insurance set forth? What should we conclude from this?
A firm with a U-shaped average cost curve finds that its costs exceed its revenues when it sets price equal to marginal cost.
Suppose that Italy and Sweden both produce jeans and stained glass. Italy's opportunity cost of producing a pane of stained glass is 4 pairs of jeans while Sweden's opportunity cost of producing a pane of stained glass is 10 pairs of jeans.
Your firm is considering two mutually exclusive investment opportunities, investment A has an expected IRR of 15%/year while investment
An inspector selects 110 items at random from the assembly line. Approximate the probability that exactly 3 defectives are selected.
Which of the following describes the difference between the demand faced by a firm and the demand faced by an industry?
(a) What is the probability that the majority will default in some way? Interpret.
Many microfinance programs are introduced in a staggered manner. That is, one group of locations get the program today, another gets the program in 6 months, and so on. Describe a difference-in-difference procedure to estimate the impact of microfina..
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