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A certain device is used to determine the sex of an unborn baby, but the device is not very reliable. If the fetus is truly a boy, the device says BOY with probability 0:8 (but, mistakenly, GIRL with probability 0:2). If the fetus is truly a girl, the device says GIRL with probability 0:7 (but, mistakenly, BOY with probability 0:3). Mrs. Jones and Mrs. Smith both use the device. For Mrs. Jones, it says GIRL. For Mrs. Smith, it says BOY. Who can be more sure about the sex of her unborn baby, Mrs. Jones or Mrs. Smith? Justify your answer using Bayess rule.
Will the gains from trade be larger or smaller if one of the factors is not mobile in production? Why? Demonstrate your conclusion graphically. Is it true that if neither factor is mobile the country will receive no gains from trade? Explain.
Share your thoughts on labor unions today. Do you have any personal or family experiences with unions? Do unions serve a valuable purpose in today's business world? Be specific about what costs and benefits you feel unions contribute today.
If the average adult produces $90,000 of output per year, how much output is lost as a result of adult deaths from secondhand smoke, according to the News on page 74?
Describe "how" producer surplus is measured?
Giving a brief explanation, determine the likely effect of each of the following on the value of GM stock. (Consider each event independent of the others.) The Federal Reserve lowers both the "discount" rate and the Federal Fund rate. The rising unem..
Define and describe Insolvency Risk. Describe the two best protections against insolvency at a Financial Institution. Describe a situation where Insolvency Risk could be caused 1) by Liquidity Risk; 2) by Credit Risk
In the HIV drug market, Gilead leads the way. Its products Truvada have sales of $3.1 billion. Stribild ($205 million), Complera ($800 million), Viread ($958 million), and Antripla ($3.6 billion). Note that 2 of these drugs are joint ventures. Compil..
What is the SAP (structural adjustment program) What are the IMF-imposed "conditionalities" Why did the IMF and World Bank imposed them upon Third Worldcountries during both their debt crises and financial crises
Problem 1.2 A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate whether more job training makes workers more productive. However, rather than having data on individual worker..
Show that the law of diminishing marginal productivity holds for the production function Q = 12K0.4L0.4. Will the MPL schedule take the shape shown in Figure?
Put this into a table then find the mean and variance. Compare these to the mean and variance for a sum of two dice.
Some economists have suggested that the best way to control medical costs is to remove the profit incentive for health care providers, particularly hospitals.
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