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1st question :
Modern medicine has made organ transplants a common occurrence, yet the number of organs that people want far exceeds the available supply. According to CNN, ten people die each day because of a lack of transplantable organs like kidneys and livers. Some economists have recommended that an organ market be established through which doctors and others could pay people for the right to use their organs when they die. The law currently forbids the sale of organs.
What do you think of such a proposal? What kind of incentives would an organ market provide for people to allow others to use their organs? What would happen to the supply of organs if, instead of relying on donated kidneys, livers, and retinas, doctors and hospitals could bid for them? What drawbacks would a free market in organs have? Have you made arrangements to leave your organs to your local organ bank? Would you do so if you could receive $50,000 for them? 2nd Question: As women's wages and employment opportunities have expanded over the past 50 years, Americans have purchased more and more labor-saving home appliances like automatic washers and dryers, dishwashers, and microwave ovens. Do you think these phenomena are related? Could higher wages and better job opportunities lead to a more capital-intensive way of performing household chores? Explain.
Suppose a monopolist faces a market demand curve given by P=220-3Q. Also, the marginal cost of production is constant and equal to 40. There are not fixed costs. What price should the monopolist charge in order to maximize profit as well as the dea..
In this economy, all production output goes to either consumption or savings. The saving rate is fixed at s where 0
A new 10,000~square-meter warehouse next door to the Tyre Corporation is for sale for $450,000. The terms offered are $100,000 down with the balance being paid in 60 equal monthly payments based on 15% interest. It is estimated that the warehouse ..
(Natural Rate of Unemployment) What is the relationship between potential output and the natural rate of unemployment If the economy currently has a frictional unemployment rate of 2 percent, structural unemployment
your company asks you to analyze two mutually exclusive projects for the coming year. project a will have an initial
Suppose that the interest rate is 4 percent. What is the future value of $100 four years from now How much the future value is total interest By how much would total interest be greater at a 6 percent interest rate that at a 4 percent interest rat..
The Cash Flows have a present value of zero. Compute the value of J, assuming a 10 percent interest rate. 0 100 - 1(year(s) 100 - 2 100 -3 4 5 6- J 7-J 8-J
a. If the interest rate is 35%, what is the maximum you can spend in the current period b. Id the interest rater was lower, you probably would be able to spend more than that. What would be the max interest rate that would allow you to spend $225 ..
The accompanying table illustrates the marginal benefit to Sian per year of education and the marginal cost per year of education. Each year of education has a marginal external benefit to society equal to $8,000.
U(Y, l) = Y^1/2 l^1/2, where Y= income, l= leisure hours, w= wage rate, price of Y =$1, NL is non-wage income and T is the maximum number of hours available. Let ‘t' be the tax rate on the hourly wage rate, so the effective wage rate is w(1-t) = w..
This would cover years 4 and 5, after the manufacturer's warranty has expired. Suppose that the expected repair costs for years 4 and 5 are $850 per year. If your discount rate is 5.5% per year, should you purchase the extended warranty.
A company has an annual requirement for 150,000 parts, which cost $125 each. The parts require processing having a $4,000 setup cost. Each part occupies 0.5 sqft of floor space in the factory. Floor space has a total cost of $12.50 per square foot..
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