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In the final round of a TV game show, contestants have a chance to increase their current winnings of $1 million to $2 million. If they are wrong, their prize is decreased to $500,000. A contestant thinks his guess will be right 50% of the time. Should he play? What is the lowest probability of a correct guess that would make playing profitable? The HR department is trying to fill a vacant position for a job with a small talent pool. Valid applications arrive every week or so, and the applicants all seem to bring different levels of expertise. For each applicant, the HR managergathers information by trying to verify various claims on resumes, but some doubt about fit always lingers when a decision to hire or not is to be made. What are the Type I and II decision error costs? Which decision error is more likely to be discovered by the CEO? How does this affect the HR manager's hiring decisions?
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Compare and contrast the behaviour of the indicators for the United States with those for the Australian economy.
a.) Draw the production possibilities frontier for each country if Asia has 10 units of labor and South America has 20 units of labor. b.) What is the range for the final terms of trade between the two countries?
Illustrate what should the Fed do in inflation continues to fall and eventually starts to become deflation.
One important aspect of modern finance that separates it from past eras is the pervasiveness and power of central banks. Central banks play a vital role in ensuring the stability and efficiency of banking systems as well as influencing interest ra..
Assuming the total population is 150 million, the labor force is 100 million, and 94 million workers are employed, What would be the unemployment rate?
Drugs 'R Us operates a mail order pharmaceutical business on West Coast. The company receives an average of $325,000 in payments a day.
Suppose a monopolist faces the following demand curve: P = 180 - 4Q. Marginal cost of production is constant and equal to $20, and there are no fixed costs. What is the value of the deadweight loss created by this monopoly?
4. Suppose that the economy-wide expected future marginal product of capital is MPKf =20 - 0.02K, where K is the future capital stock. The depreciation rate of capital, d, is 20%per period. The current capital stock is 900 units of capital. The price..
What are the main goods and services the United States traded internationally? What trade barriers were in place during that decade? What are two pros and two cons of the trade barriers used?
Due to rising unemployment , bike sales are rising across the USA. The bike industry estimates that , all else equal, a 1% fall in average income leads to a 1.5% increase in the sale of bicycles. Calculate, interpret and explain the YED for bicyc..
Explain how individual economic decisions affect this market failure and how economic principles can be applied to modify those individual decisions to help correct the market failure.
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