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The football coach at a midwestern university was given a 5-year employment contract that paid $225,000 the first year, and increased at an 8% uniform rate in each subsequent year. At the end of the first year's football season, the alumni demanded that the coach be fired. The alumni agreed to buy his remaining years on the contract by paying him the equivalent present sum, computed using a 12% interest rate. How much will the coach receive?
What impact does consumer spending have on the aggregate economy? How is it similar or different from the impact that government spending have on the aggregate economy?
Sam has a utility function U(x,y)=min{4x+y,5y} where x is measured on the horizontal axis and y on the vertical axis. On a clearly labeled graph, draw Sam’s indifference curves for U(x,y)=5 and U(x,y)=10. Explain carefully every steps of your draw.
What is the Nash equilibrium of this pricing game? Is there a better solution to this game? If so, what mechanisms would you advise General Electric or Westington to put in place to increase the likelihood that both parties agree to the better soluti..
Explain how an acceleration of the GDP growth rate could have contributed to the fall in the debt-GDP ratio during the 1990's.
Assume that you go on vacation to France. If the exchange rate value of the dollar increased in relation to the French currency, the euro, would the goods you purchase in France become more or less expensive to you? Would you be likely to buy more go..
Management and a labor union are bargaining over how much of a $50 surplus to give to the union. The $50 is divisible up to one cent. The players have one-shot to reach an agreement.
Writing Assignment Rubric: Thinking Like an Entrepreneur Top Scores (A-B) - The top scoring students will do the following:
Which among the equation will you choose for a better demand estimation. Illustrate answer in the language of statistics.
Explain what caused the Great Recession of 2008 and then assess the fiscal policy responses of the federal government and the monetary policy responses of the Federal Reserve
Suppose an economy produces three goods (rice, bananas, and strawberries). Draw its PPF assuming constant opportunity costs, then draw it with increasing opportunity costs.
A sudden crash in the stock market shifts
Why doesn’t the U.S. simply restrict all goods coming in from China? Why can’t the U.S. just minimize the amount of imports coming in from all other countries?
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