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Consider two workers with identical preferences. Phil and Bill. Both workers have the same life cycle wage path in that they face the same wage at every age, and they know what their future wages will be. Leisure and consumption are both normal goods.
a. Compare the life cycle path of hours of work between the two workers if Bill receives a one-time, unexpected inheritance at the age of 35.
b. Compare the life cycle path of hours of work between the two workers if Bill had always known he would receive (and, in fact, does receive) a one-time inheritance at the age of 35
Consider an economy with two separate regions: A and B. There are 100 million workers in total who supply their labor in elastically. The demand for labor (in millions) in region A is EA = theta *100 15 wA and in region B it is .EB = theta *100 15 ..
If the price of motel room increases by 10% while the prices of other goods and services increase by 5% on average, the relative price of motel room has?
Suppose you discover that average fixed costs are $2 and average variable costs are $7. Indicate what the firm should do.
As a rule, the optimal capital structure is found by determining the debt-equity mix that maximizes expected EPS.
What will the new Lerner Index be after some time with the new demand curve and market price of 30? What firms survive the new demand curve in the industry and why?
Contrast the difference between temporary and permanent damages on the incentives of people to build new houses near the cement factory
A firm's expansion path represents labor and capital inputs that minimize the cost of production associated with each output level. If a firm uses only two factors of production, one of whose marginal product becomes negative when its use exceeds a c..
Which has a higher Y.T.M. and why? What would be the real return on bond A and B if the actual inflation rate is 3%?
State whether each of the following events will result in a movement along the market demand curve for labor in electronics factories in China or whether it will cause the market demand curve for labor to shift. If the demand curve shifts, indicate w..
In country B the opportunity cost of 100 gallons of beer is 0.95 tons of cereal. Both countries can experience gains from trade if the exchange rate for a ton of cereal is 96 gallons of beer
Explain how much and why. This could include things such as mergers, innovative marketing, etc. Illustrate what products and/or services that made by this company.
The country of Meditor uses the merit as its currency. What were its consumption and government expenditures on goods and services.
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