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Question: A solar-powered personal aircraft with VTOL capability has been under development for the past 30 years by a group of engineers and physicists. SPPAV, as the plane will be termed, is expected to be available for its final test flight in exactly 3 years from now. Over the previous 30 years, a total of $100 million has been spent in its development. Assuming the $100 million was spent in an equal amount each year, and assuming an interest rate of 10%, determine the following:
(a) The value of the total investment now, after the 30 years.
(b) The value of the total investment at the expected time of the final test flight in three more years, assuming the same amount is spent for each of the next three years.
(c) The value of the total investment at the expected time of the final test flight in three more years, assuming that twice the amount is spent for each of the next 3 years than that for the previous 30 years.
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.
Some commentators have argued that the failure of the “Super committee” is good thing for the economy? Do you agree?
Case study analysis about optimum resource allocation: - Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..
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Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:
Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..
"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"
Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"
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