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An engineer decided to make a careful analysis of the cost of fire insurance for his $200,000 home. From a fire rating bureau he found the following risk of fire loss in any year.
(a) Compute his expected fire loss in any year.
(b) He finds that the expected fire loss in any year is less than the $550 annual cost of fire insurance. In fact, an insurance agent explains that this is always true. Nevertheless, the engineer buys fire insurance. Explain why this is or is not a logical decision.
Assume that there are only two goods in the economy: video games and water. The total amount of these goods are given, there is no production. The world is inhabited by two people: Ann and Bob.
You plan to buy a $152,015 house. You have $24,200 to use as the down payment. The bank offers to loan you the remainder at 18% nominal interest compounded monthly. The term of the loan is 20 years. What is your equal monthly loan payment?
The graphical relationship between real gross domestic product (GDP) and capital is called the:
Use the line and double-drop line tools to draw a graph depicting the demand for and supply of U.S. dollars with the exchange rate expressed as pesos per dollar. Label all curves. Plot and label the equilibrium (E1).
Depends on economic casebook how much does it cost to make a pair of nike shoes international.
Two identical countries, Country A and Country B, can each be described by a Keynesian-cross model. The MPC is 0.8 in each country. Country A decides to increase spending by $1 billion, while Country B decides to cut taxes by $1 billion. In which cou..
The current payroll tax is 7.65% on both employers and employees (as of 2013). Who do you think bears the economic burden of this payroll tax—firms or workers? Why? Using the tax incidence approach, support your answers using economic principles.
1. Name key elements of Object-Oriented systemName key elements of Object-Oriented systemss. 2. Briefly describe three steps of the Analysis Phase
What do temporary changes in the tax code do for incentives? Does this encourage long term planning? Should the government encourage long term planning? Should the Government use tax policy to change behavior?
Explain how much profit will the perfectly competitive firms earn. Explain how much profit will the monopoly firm earn.
The U.S. Bureau of Labor Statistics publishes a variety of unemployment statistics, including the number of individuals who are unemployed and the mean length of weeks that the individuals have been unemployed. Find the confidence intervals of the me..
An individual makes $64850 per year. If they move to a city where prices are on average 20 percent lower, and they continue to make the same salary, then what is their purchasing power parity adjusted income?
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