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1. Jennifer and David are risk-averse and both own residential homes worth $500,000. Jennifer's home is comprised of brick construction and is located in the Mohave Desert. David's home is comprised of wood construction and is located in the San Bernardino national forest. If all owners of 500,000 residential properties must pay the same premium for home fire insurance, explain which consumer, Jennifer or David, is more likely to buy home insurance?
2. Does your answer in Q4 above imply a market failure problem for the insurance company and/or consumers of insurance?
q1. the wage rate is pound5 and the rental rate cost of capital is pound2. calculate the lowest cost method of making 4
Using a balance sheet like the one presented above, show how the transaction affects the central bank's balance sheet and the money supply.
What is the contribution margin per unit? What is the contribution margin ratio? What is the variable expense ratio? If sales increase to 1,001 units, what would be the increase in net operating income?
Consider the budget of the U.S. government. First, give an overview of the size of government in the U.S. For example, how large is the U.S. government relative to historic trends or other countries? Second, discuss what are the primary sources of re..
An open-pit mine must fund an account now to pay for maintenance of a tailing pond in perpetuity (after the mine shuts down in 30 years).
An investor has carefully studied a number of companies and their common stock. From his analysis, he has decided that the stocks of six firms
Which assumption(s) allow(s) us to draw in difference curves? A) the Assumptions are cardinal measurement and cardinal ranking B) The assumptions are rank ability and completeness C) The assumption is that the more we have of a good, the less we are ..
If you purchased a new model of a digital camera right after it is released you will likely pay more than if you purchase it six months after release. Why is this example of price discrimination on the part of the firm?
You are a member of an international ethics commission assembled by the World Trade Organization. Your team has been asked to assess the global tactics of Microsoft in recent years. A primary issue is whether Microsoft took unfair advantage of its po..
Describe the difference(s) between the following terms/phrases. Subsidiaries/affiliates vs. Associates of a MNC. Plant-level economies of scale vs. firm-level economies of scale.
Use the Keynesian-cross model to illustrate graphically the impact of an increase in taxes on the equilibrium level of income.
What is a business cycle? With an aid of a graph, identify the phases of the business cycle. Why would economist expect unemployment to fall during an economy’s expansionary phrase and to rise during a contractionary phrase? Discuss and make referenc..
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