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Billy and Bob are both 50 years old and work at the same rm. Billy is a more able individual and presently earns $90,000/year; Bob earns $50,000/year. They have the opportunity to enroll in a job-training course for a one-time cost of $10,000. The raise to which they are entitled depends on how much they learn in the course. Again, since Billy is more able, he expects to earn an additional $2,000/year, while Bob expects to earn only an additional $1,000/year. Both workers have a discount rate of 5%.
a. If both workers expect to work until age 60 (i.e., ten more years), will either opt to take the course?
b. What is the minimum number of years each worker needs to work before retiring if the course is to be a wise investment?
Describe how the equilibrium wage and employment levels are determined. Depict how a legal minimum wage alters market outcomes.
Which of the following is a disadvantage of inflation targeting? But there is _______ evidence to support the four claimed disadvantages of inflaiton targeting.
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jim likes to go to church but he also likes to drink wine. Unfortunately for jim the consumption of one of these goods reduces the enjoyment of the other. Draw the indifference curves that display jims preferences
Illustrate what is the expected value of your earnings from investing in General Motors stock.
Countries A and B import goods from each other. Country A’s tariff is tA percent and county B’s tariff tB percent. Given these tariffs, country A’s payoff from trade (measured in billion dollars) is 40 + 60tA – tAtB – tA2 and country B’s payoff from ..
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Coke also Pepsi have their market dominance for nearly a century. General Motors also Ford have been hard hit by competition.
In searching for global markets to enter, illustrate what are some criteria that Rollerblade should use to select countries to enter and illustrate what three or four countries meet se criteria best and are most likely candidates.
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