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How is pollution an example of a negative externality?
Explain how negative externalities and, more specifically, pollution often result from a lack of clear property rights.
Conduct a comparative DuPont analysis of two companies. Using a search engine, find one large corporation included in the S&P 500. Then, find one of its largest competitors.
What fiscal policy recommendations would you give considering the state of the economy today and in the future, the deficit, and the debt. Is your recommendation pro-cyclical or counter-cyclical? Explain your policy choices that you are making.
Suppose that a city mayor proposes to pay for the acquisition and construction of public parks by implementing a 7-year local sales tax. Someone argues that the financing mechanism should instead be something that is spread out over more time, noting..
Calculate the duration and modified duration for a bond that has a coupon rate of 7% (paid annually), 3 years to maturity, a YTM of 7% and a par value of $1000. Calculate the effect on the price of the bond (in dollars) of a 3% decrease in yield usin..
A cinema hall has a capacity of 150 seats. The owner can oer students a discount on the price when they show their student
Suppose you have three indivisible assets, A, B and C with internal rates of return 2%, 5% and 10% respectively and initial costs of $1, $3, $3. Suppose you have $4 at 1% and can borrow at 12%. Which assets do buy?
Develop careers outside the home as they age - take on more of the day-to-day chores as they age.
Wooldridge Problem 4.6 In section 4.5, we used as an example testing the rationality of assessments of housing prices. There, we used a log-log model in price and assess [see equation (4.47)]. Here, we use a level-level formulation. i. In the simple ..
Consider the following strategy prole. All students of all types announce they are type 12. Ben identies all students (regardless of their announcements) to be equally likely to be each type, and assigns them all grade 6. Regardless of whether or not..
As a manager of a chain of movie theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves at your mov..
List all possible factors to influence the money multiplier when the economy faced the financial crisis. The money multipliers were changed before and after financial crisis. Explain the FED’s monetary policies to increase the money supply in the Gre..
Inducing the worker to exert effort A worker can exert two effort levels, good or bad which induce a production error with probability 1/4 and 3/4 respectively. Calculate the optimal contract and the effort that the principal desires under conditions..
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