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Discuss the following quote from Cowell (1995): ‘‘The main disadvantage of G[ini] is that an income transfer from a rich to a poorer man has a much greater effect on G if the men are near the middle rather than at either end of the parade.'' Do you agree? Why or why not? (Hint: Use the formula for the Gini coincident to determine the effect of a fixed transfer at different points in the income distribution.) Does the Gini have other ‘‘disadvantages''?
If the average person drinks 2 bottles of water per day or uses 5 gallons per day in getting that amount of water from the tap, what are the present worth values of drinking bottled water or tap water per person for 1 year
Suppose that every driver faces 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,000. Suppose there are two types of individuals: those with $60,000 in the bank and those with $5,000 in the ba..
Recent increases in rents have caused the citizens of Elmville to vote for a rent ceiling of $1200. Assuming all rental units in Elmville are identical and the supply and demand for rental units are given by Qs = -1000 + 20P Qd = 50000 - 10P
You are the sales manager for an appliance store. You have a total of 100 sales people. 40 sales people sold $1000 or less and the rest sold over $1000. Of the 40 who sold $1000 or less, there is a 0.20 probability that the sales person was new.
What happens in the Oil market if OPEC increases oil production?
What are some potential advantages and disadvantages of the index? What if we don't have any input from managers to calculate Weights?
The Coma Chemical Company needs a large insulated stainless steel tank for the expansion of its plant.coma has located one at a Brewery that has just been closed.The brewery offers to sell the tank for $15000 including delivery. the Price is so lo..
The price of a good to be sold by a Monopoly is $0.50. The market has an elasticity of demand (n) of 5. a. What is the mark-up and what is the Marginal cost. What would this look like for a perfectly competitive market.
nbspsuppose that a firm faces a demand curve that has a constant elasticity of -2. this demand curve is given by q
Teletronics reported record profits of $100,000 last year and is on track to exceed those profits this year. Teletronics competes in a very competitive market where many of the firms are merging in an attempt to gain competitive advantages.
What is the per-unit amount of the externality?
Mary plans the entire week's meals for her family, while Fred shops each day. Which is likely to produce more varied meals? What is this effect called?
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