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You recently had an auto accident that was your fault. If you have another accident or receive a another moving violation within the next 3 years, you will become part of the "assigned risk" pool, and you will pay an extra $600 per year for insurance. If the probability of an accident or moving violation is 20% per year, what is the probability distribution of your "extra" insurance payments over the next 4 years? Assume that insurance is purchased annually and that violations register at the end of the year-just in time to affect next year's insurance premium
To assess a firm's demand for capital we must determine the present value of marginal revenue products and marginal factor costs of capital. A firm maximizes profit in the hiring of capital when the MRP of capital is greater than the MFC of capital. ..
What are the advantages and disadvantages of fixed versus floating exchange rates?
Give two reasons why the marginal cost curve is upward sloping. You will want to use a graph(s) as part of your answer. Be sure to explain in words what your graph(s) are showing.
The Chairwoman of the Federal Reserve has announced in her last conference that if the labor market continues to show signs of improvement they will continue with the tapering process and eventually the increase in the benchmark interest rate. How th..
A piece of equipment costing $57,500 is being considered for a production process at Dew Chemicals. The expected benefits per year are $4,500 and estimated salvage value is $10,000. Determine the rate of return the company can get in this equipment p..
When individual fishing boats harvest more fish each year in order to maximize profits while, as a result, threatening the fish population with extinction, it is called:
Regarding market constraints: A. Explain how taxes and quotas will affect the market price, the consumption level, and total (consumer plus producer) surplus in a particular market. B. Will you answer depend on whether the market is perfectly competi..
If taxes increase by $500 and the MPC is 0.8, what is the change in consumption and private savings? What is the change in public savings? what is the change in total savings? What is the change in investment?
Suppose that aggregate planned expenditure increases by $0.75 trillion for each $1 trillion increase in real GDP. If investment increases by $1 trillion, calculate the change in the quantity of real GDP demanded if the price level is constant at 105.
How Deming, Juran, Crosby, Feigebaum, Ishikawa and Taguchi can be compared in the real life? Can you identify what is similar between the three and what is dissimilar between them? You are to prepare table ( Comprehensive to compare them on various p..
Find the ?rst and second derivative of each function and determine whether each function is convex or concave. If it is both, ?nd the ranges for which it is convex and ranges for which it is concave:
Consider an economy operating below its full-employment output level. The government wants to enact a reduction in income taxes in an effort to restore the economy to full-employment output. Use the dropdown menus to fill in the table and complete t..
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