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1. Explain the theory that education acts as a signaling device. How does this contrast to the theory of education as an investment in human capital?
2. Explain the difference between inferior goods and normal goods. As a developing economy experiences increases in income (measured by GDP), what do you predict will happen to the demand for inferior goods?
Suppose Harrod-Damar model with fixed capital-output ratio. Suppose that the country saves 20 percent of its income and has a capital or output ratio of 4.
Given the elasticities in question 2. and assuming that higher gasoline taxes would not shift either the SUV supply curve or the hybrid supply curve, a. explain how higher gasoline taxes would affect the equilibrium price and quantity of SUVs. b. e..
if the US engage in foreign trade, should we limit foreign trade to nations that engage in fair trade by giving us access to their domestic markets and reciprocal import tariff reductions that mirror our tariff reductions on our imports from them
A no of empirical studies of automobile demand yielded the subsiquent estimates of income and price elasticities
Experiment with the number of steps for binomial tree model until your numerical result stabilizes to within one cent of the result given through the Black-Scholes formula.
Suppose that an industry has six firms with market shares. % MARKET SHARES Firm ADerive the HHI. Suppose firms C and D propose a merger. Derive post-merger HHI. Might this merger be challenged under the horizontal merger guidelines?
Explain how would you rate Ben Bernanke's performance as Chairman of the Federal Reserve.
Assume France has a Gini coefficient of .4, and Germany has a Gini coefficient of .3. Which of the following conclusions are we able to make with this data?
Describe how the indicator was created and its current value. What does this key indicator say about the current economic condition.
Life insurance companies require applicants to submit to a physical examination as proof of insurability prior to issuing standard life insurance policies.
What fiscal policies do you think caused the crisis and what were the effects of the fiscal policies implemented in reaction to the crisis?
The manager of a corporate division faces possibility of an audit each year. She prefers to spend time preparing if she will be audited;
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