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1. Describe some of the ways that externalities can be internalized
2. Which two characteristics define a public good? Provide an example of a public good that was not discussed in the chapter.
3. What is the tragedy of the commons? Give an example that is not in the textbook.
(Interest on the Debt)Why did interest payments on the national debt fall from 15.4 percent of the federal budget in 1996 to 6.7 percent in 2004.Why is this percentage expected to increase in the future?
Explain what your Discrete Random Variable is and what probability distribution can be used to describe it. Give some examples and interpretation of the usage of the probability distribution function and outline its business relevance.
Suppose that the rural part of a country is hit by a major earthquake that destroys 10% of the countries housing stock. The government and private sector respond with a major construction effort to help rebuild houses. Discuss how this episode is ..
Skilling was quoted in a financial journal as saying, "Only two things at Enron are not subject to negotiation: the firm's personnel evaluation policy and its company-wide risk management program." (McLean 2003)
A special power tool for plastic produces costs 400, has a 4 year useful life, no salvage value and a 2-year-before tax payback period. Assume uniform annual end of the year benefits. A. Compute the before tax rate of return
Show how to represent the M:N recursive relationship in your answer to question 5.29. How does this differ from the representation of M:N nonrecursive relationships?
Picabo borrows $1,000. To repay the amount she makes 12 equal monthly payments of $90.30. Determine the following: (a) The effective monthly interest rate (b) The nominal annual interest rate
After observing C, the seller must decide whether to produce and deliver the good, or not produce it and breach the contract.
the utility function (x1,x2)= (x1+1)(x2+4). The price of x2 is $1. Lee spends all his income to buy 6 units of x2 and no x1. What is the minimum level of the price of x1 compatible with these facts
Five years ago, a company invested in equipment having a 10-year technological life and before-tax cash flows (gross income less expenses) given below. Sales were not as good as projected, and the company is considering terminating the project.
2. the first equation to be estimated is fxi b0 b1 uri uiwhere u is a disturbance term and the i subscript
Solve Tracy's problem of how often to go to the ATM when the nominal interest rate on her bank account is 10 perent, she spends $30 each day, it costs her $.50 each time she uses her ATM, and she thinks that there is a 15 percent chance.
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