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Explain how economic well-being, environment and ethics all interact to contribute to sustainable development.
The inflation-free rate (real rate) is 2.3% per year and the inflation rate is 2.03% per year. The effective interest rate (market rate) is therefore
Describe the quantity clearly, and explain in words why you expect the particular shape.
What is the present value of the following series of prospective payments?
An individual has to choose between two possible investments. The rst investment yields a net wealth of $100 with probability 0.5, and a net wealth of $0 with probability 0.5. The second investment yields a net wealth of $40 with probability 1.
Traditionally we look at the distribution of consumption as a fairness concern, not an efficiency concern. Why is that the case? Is there a perspective from which income distribution looks like a public good?
What would be the pros and cons of an economy of personal income tax being fully substituted with a sales tax? Please explain why.What are the pros and cons of the government not being involved in the labor market (laissez-fair)?
Suppose that the production of $1 million worth of steel in Mexico requires $100,000 worth of taconite. Mexico's nominal tariff rates for importing these goods are 20 percent for steel and 10 percent for taconite. Given this information, calculate th..
Suppose that 8000 (i.e 8 units of one thousand) construction permits are expected to be issued in 2010. What would be the point estimate of Phoenix lumber Company’s sales for 2010?
Suppose that a consumer’s demand for a product is given by P = 80 – 2Q. A monopolist produces the product at constant marginal cost, where MC = $6. The firm has no fixed costs. Suppose the monopolist sets a two-part tariff for the good where the cons..
Black Friday is a sale whereby, the day after Thanks giving stores frequently reduce their prices dramatically, sometimes below cost. This often causes large lineups to form, as people can wait for hours in line before the store opens.
A.Despero Inc. has a production cost function described by C(q)=250+40/q+20q, and an associated marginal cost function of MC(q)=20-40/q^2. Currently, the price of the Despero product is $10 per unit. How much Despero Inc. should produce if it chooses..
Give an explanation, in your opinion, of the cultural impact of government mandated price ceilings such a rent control in New York City. Such things as supply of housing, redistribution of resources, shortages, market distortion and incentives sh..
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