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Two students debate about the realism of economic assumptions. Donald is an economics student and Boris is a sociology student. They argue about a key assumption in the labor supply model: leisure is a good (more leisure is preferred to less leisure). Boris argues that some people enjoy work, therefore hours of work is not a bad and the labor supply model is not applicable to these people. Donald argues that that even if these people enjoy work, the labor supply model is still applicable if the marginal utility of leisure if larger than the marginal utility of work. Who is correct? Explain.
The current spot price of a stock is $50, the expected rate of return of the stock is 7%, and the volatility of the stock is 20%. The risk- free rate is 5%. Find an 80%-confidence interval for the stock price in 3 months. Also compute the expected pe..
What is market equilibrium? Does the market always achieve equilibrium? If so, why? If not, why? Explain. Illustrate with examples and graphs where necessary?
Why is it being used to hold "illegal combatants" instead of a military prison in the United States
What were the economic benefits that the shifts in investment during the Great Depression brought to the United States?
What does an increase in the savings rate do for a country's output? Why doesn't every country do that?
With regard to global warming policy, describe, in a short paragraph, the importance of: Discounted costs and benefits. b) Public goods.
how should she reallocate her expenditures between the two goods
A national fast food restaurant chain has recently made the decision that their breakfast menu will now be available all day long. Using only an illustrative graph with no numbers, demonstrate how the decision to offer an all-day breakfast menu would..
A small university with many competetiors has determined that the price elasticity of demand for its services is equal to -2.5. The university Board of trustees is considering rasing tution by 10% to generate additional revenues. Is this likely to be..
The good can be produced at a constant cost of $10 for the first 20 units. After the first 20 units, the marginal cost equation is MC = 12Q.
Is it always necessary for government to intervene and internalize the profit and the cost externalities? Illustrate your answer using a real world example.
Your company needs to replace its natural gas-fired commercial boiler. The old model (with basic features) has a capacity of 50 MBtu/hr and was purchased in 2007 at the cost of $181,000.
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