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The federal government would like to give grants to local states to promote free medical vaccinations for children. However, because of a limited budget the federal government wishes to target its spending as evidently as possible.
a. Define what would be a matching grant, and explain why it could be preferable to a block grant.
b. Now consider a closed-end matching grant that matches state spending dollar for dollar up to a specified amount, at which point the subsidy is phased out. Do you think a closed-end matching grant is preferable to an open-end matching grant?
If a firm's production function is Y = KαL1-α, show that it can earn at most zero profit. Use this production function to express the output-labor ratio as a function of the capital-labor ratio. Discuss the properties of the function derived.
What are the autarky prices of food and cloth?
A firm is using 500 units of labor and 100 units of capital to produce 100 units of output. Labor costs $5 per unit and capital $20 per unit. At these input levels, another unit of labor adds 5 units of output, while another unit of capital adds 4..
The annual real interest rate is 0.07, and the per-year opportunity cost of using the forest land to grow timber is 36000 platinum hexagons (PH). Each unit of timber can be sold at a price of 900 PH.
suppose that you just purchased a used car worth $12000 in today's dollars.assume also that to finance the purchase you borrowed $10000 from a local bank 9% compounded monthly over two years. the bank calculated your monthly payment at $456.85
Using the graph below, draw the consumer's budget line in the absence of the Food Stamp Program. On the same graph, show the budget line with the Food Stamp Program.
TO reproduce Table 1 in the paper, the data summary, on page 8. Note that the months involved are January 1994 through September 2000.Create an excel spreadsheet that has a column of months ranging from Jan 1994 to Sep 2000. Divide the risk free r..
According to U.S. Census Bureau data (2004), average monthly income for a person with a degree in engineering was $5296 versus $3443 for a degree in liberal arts. What is the future value in 40 years of the income difference at an interest rate of..
a Calculate the percentage return on the security if the payoff to the security in one year is $1,000, $1,500, $2,000, or $2,500. (Note: This is the total amount returned to the investor, so you may just calculate the total return and not worry
An asset in the 5-yr. MACRS property class cost $100,000 and has no salvage value after six years of use. The asset will generate $300,000 in annual revenues and will require $100,000 in annual labor costs and $50,000 in annual materials costs.
. The challenger costs $6,000 and has O&M costs of $2,000 per year, increasing by $1,000 per year. The machine will be needed for only three years, and the salvage value at the end
paid $200 for business cards, $1,000 for a listing in yellow pages, and $250 for an annual business license. She also leased a professional portrait camera and studio lighting equipment by signing an agreeement to pay a monthly lease of $1000 per ..
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