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Cost Sharing for Monitoring El Niño. Suppose the monitoring of El Niño s current costs a total of $12 billion per decade. Over a decade, early warning of the current s path would reduce its damages by $9 billion in the United States, $6 billion in Canada, and $3 billion in Mexico. (Related to Application 2 on page 648.)
a. Does any country, acting unilaterally, have an incentive to monitor El Niño?
b. Do the social benefits of monitoring exceed the costs?
c. Design a cost-sharing arrangement that will cause all three countries to support a monitoring system.
Each statement in either true (in all cases) or false (for at least one example) If false, construct a specific example to show that the statement is not always true. Such an example is called a counterexample to the statement. If a statement is t..
Q = 500X - 2X2 where X is the only variable input used by ZCorp to product its product, Q. Because ZCorp sells its product in a perfectly competitive market, it can sell all the Q it produces for $25. The current market price for input X is $100. ..
Calculate the 99 percent confidence interval for β2 in the earnings function example (b2 = 1.073, s.e.(b2) = 0.132), and explain why it includes some values not included in the 95 percent confidence interval calculated in the previous section.
Given how resources are currently allocated, the Lexington police department can use a marginal policeman to prevent murders, in which case he will prevent 1 murder/year, or the prevent robberies, in which case he will prevent 75 robberies/year.
Suppose that workers value their time anywhere between $0/hour and $50/hour, with every value between 0 and 50 being equally likely. A worker will take a job only if the wage is above the value of his time. Suppose that if a worker takes a job.
Suppose demand for Terry's haircuts increase to P=40 - 0.40Q. At a price of $15, should Terry raise the price of her haircuts? Why or why not?
Suppose a second nation has the following data. Plot the PPC, and then determine which nation has the comparative advantage in which activity. Show whether the two nations can gain from specialization and trade.
Interpret the null hypothesis using your t-statistic.
Choose the more promising of the two, and write another 100 words describing what aspects of the topic you're planning on focusing on. Essentially, you're recording and commenting on ways you might look at whatever you've chosen and why it might l..
What is the required policy mix? Use an IS-LM diagram to show your policy proposal.
What is human capital, and how is it different from strictly the quantity of workers available for work? Name three ways to increase a nation's human capital. Is an increase in the size of the labor force also an increase in the human capital? Exp..
How important is quality assurance to Sheena's business? Explain.
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