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Social security was created as an “unfunded” or “pay-as-you-go” plan. Explain how an “unfunded plan works. Suppose we suddenly ended social security today. How would the return earned by the last generation of retirees compare to that earned by the first generation and why?
Suppose you are advising a small country such as Romania on whether to print its own or to use the money of its larger neighbor such as the European Union. What are the costs and the benefits of a national money? Does the relative political stability..
Illustrate what kind of gap-inflationary or recessionary-will the economy face after the shock.
Juan Garza invested $114,000 10 years ago at 8 percent, compounded quarterly. How much has he accumulated? Use Appendix A for an approximate answer but calculate your final answer using the formula and financial calculator methods.
Believe that they must be able to explain people's tastes in order to elucidate what happens when tastes change.
Madison has 5 times the marginal utility of consumption as Seth. If the government wants to achieve maximum societal happiness, should it transfer wealth from Seth to Madison?
Suppose a consumer is at an optimum, consuming 6 hamburgers a week at a price of $1.50 each and 10 donuts a week at 50 cents a donut.
Imagine that there are 1,000 consumers. For each consumer, the willingness to pay for a widget is distributed uniformly over the interval [0,1] depending on the style of the widget. A retailer with a particular study of the good knows this distributi..
Broadband technology refers to ___________.
For a profit maximizing monopolist, _____. In contrast, for a profit maximizing perfectly competitive firm, _________.
A local video rental monopolist faces the weekly demand function D(P)= 1000-100P. The marginal cost of a rental is $4. Suppose the town government places a $1 tax on all video rentals. What effect will the tax have on the price the monopolist charges..
At the profit-maximizing quantity, what is the average total cost of producing e-books.
A stranger approaches you in the hospital parking lot and identifies himself as a lawyer who would like to help people and he would like to give you some of his business cards to hand out to patients who are not happy with their medical treatment; he..
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