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You win the lottery. You can either have $850,000 right now, or $1,000,000 paid in 5 annual installments of $200,000 starting next year. If the interest rate is 6% (0.06), which will you choose? Why? What if the interest rate is 4% (0.04)? Explain.
Read the articles by Dravone and Gandal; Schepp; and Craft on different products and how the demand for them has been estimated, either correctly or incorrectly.
ADVANCED ANALYSIS Currently, at a price of $2 each, 200 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $2 to $4 is unit-elastic (Es = 1). In the long run, a..
Briefly explain the meaning of f test why do you think this test is considered to be more important in multiple regression analysis than it is in simple regression analysis.
Consider the term political economy, and how it's applied to the field of political economy uses the tool.
John Livingston is looking into the possibility of buying several coin-operated vending machines also placing them in the local hospitals.
Course is macroeconomics 1. Explain why there is a close relationship between supply, demand and the allocation of resources.
In letters between the two, Rita Borelli contracted to sell “my car” to Viola Smith for $2,000. It was later shown that Borelli owned two cars. She refused to deliver either car to Smith, and Smith sued Borelli for breach of contract. Borelli raised ..
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 20,000 bottles of wine were sold every week at a price of $4 per bottle. After the tax, 13,000 bottles of wine are sold every week; consumers pay $5 per bottle, ..
Assume that the number of cars arriving at a gas station within 10 minutes has a Poisson distribution with the parameter of 4.
The only way Sarah entertains herself is to go to the movies, where she always buys two bags of popcorn. Find Sarah’s demand functions for movies and popcorn. Find Sarah’s compensated demand function for popcorn and draw her ordinary and compensated ..
Demand curves have a negative slope because Select one: a. firms tend to produce less of a good that is more costly to produce. Incorrect b. the substitution effect always leads consumers to substitute higher quality goods for lower quality goods. c...
Cartman and Kyle are castaways on an island and spend their days picking papayas and mangos. Cartman has a comparative advantage in picking papayas. Kyle has a comparative advantage in picking mangos. Use the infinite line tool to draw the linear pro..
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