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Question 1. Suppose a model of inter-generational mobility. (a) When parental wealth increases, what happens to the potential consumption of children? (b) When child ability increases, what happens to the potential consumption of children? For each case, explain your answer.
Question 2. Differentiate between intra-generational mobility and inter-generational mobility. Provide examples.
Question 3. What might social mobility entail if relative poverty were eliminated without addressing inequality in the top and bottom quintiles of the redistribution?
Question 4. How do economic structures and inequality contribute to poverty? In your answer, provide specific examples.
Question 5. In providing for children, parents may consider how to best allocate resources. Suppose rhis the rate of return on the next increment of human capital and r is the rate of return on saving. How does the relationship between rh and r influence the decision of parents to either invest in their children's education or provide monetary transfers to their children? Explain using an example.
Briefly describe a merger or acquisition that has been in the news within the past year and provide a link to the information.
The labor demand and supply curves are respectively: Ld = a+b?w and Ls = c+d?w, where a, b, c, and d are parameters of the model, w is the wage, Ld and Ls denote labor demand and supply, respectively. What are the values of the parameters c and d tha..
a. What is ‘quantitative easing'? (Hint: see P.911 of textbook).
The demand for a good is more price elastic A. if closer substitutes are available. B. in the short run than in the long run. C. if the share of the good in the average? consumer's budget is smaller. D. if the good is a necessity rather than a luxury..
Construct a numerical example to show that the exclusion of municipal bond interest from income taxation is equivalent to a government subsidy of state and local capital spending. Assume you believe that income is a good proxy for ability to pay. Wha..
What does the demand curve faced by a monopolistic competitive firm look like? Explain why it is sloped this way, and what this implies about the relationship that exists between price and marginal revenue under monopolistic competition.
List three reason why we protect perishables from exposure to heating, cooling, heat, light, people traffic.
The main economic rationale for a patent system is that quick imitation and commercialization reduces the expected profits of drug companies which thereby diminishes innovative activities. Given market realities, do you think a patent system is truly..
If you invest, you have a 0.4 probability of gaining $100,000 and a 0.6 probability of losing $40,000.
Elucidate how Illustrate what the balance sheet will look like (comparison to above) if Brimstone declares a 10% stock dividend.
Contrast how climate change is affecting the area in the countries mentioned in the documentary with how climate change is affecting the U.S.A.
Students examine the long-run determinants of both the level and the growth rate of real GDP per person and the factors that determine the productivity.
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