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This is a "Cost Benefit Analysis" question:
1. The government is considering a project that would cost $50,000 to build now, and would provide a benefit to citizens of $10,000 per year for the next 6 years. Someone says: "This project pays for itself after 5 years, so the benefits clearly outweigh the costs." Do you agree with this person's reasoning? Why or why not?
The general role of financial intermediaries is to:
Consider the following Demand equation that represents Demand for goods to your company produces q=100-2p. Total cost of production is cq. Given to your company's objective is to maximize profit
Suppose the government decides to increase taxes by $40 billion in order to increase Social Security by the same amount. Explain how will this combined tax-transfer policy affect aggregated demand at current prices.
According to this Application, after the government deceased cigarette taxes in several Canadian provinces in 1994, the decrease in the price of cigarettes in these provinces A) more than doubled the smoking rate. B) created no noticeable change in t..
Which one of the following statements about total quality management (TQM) is TRUE?
Walmart is an American multinational retailing corporation that mainly operates a chain of hypermarkets, discount department stores and also grocery stores.
What is the Institutionalist s theory regarding the instrumental and ceremonial aspects of production and distribution in Political Economy? Note: a discussion of the Veblenian dichotomy, and how it fits into the theory of distribution and production..
Derivatives are financial instruments:
Lego boxes: A box of Legos consists of complex bricks and basic bricks. The production function of Lego boxes is assumed to be: Assuming that the Lego company optimizes its production, explain why the relative price of a complex brick relative to a b..
For observational data such as global temperature, stock market prices, un- employment, the most persuasive scientific evidence that one variable causes a change in another is. A model derived from accepted theory that demonstrates that a change in o..
Jim currently pays premium $P for his health insurance, which he purchases in a competitive health insurance market, and covers 80% of all his healthcare costs (i.e. 20% coinsurance rate; no deductible or catastrophic cap). If he were to instead purc..
Suppose the saving rate is initially greater than the golden rule saving rate. We know with certainty that an increase in the saving rate will cause
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