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Q1. Let's think about two countries, Frugal and Smart. In Frugal, people devote 50 percent of GDP to making new investment goods, so = 0.5, and their production function is Y. In Frugal, people devote 25 percent of GDP to making new investment goods, so = 0.25, and their production function is Y = 2. Both countries start off with K = 100. What is the amount of consumption in each country this year?
Q2. As vice president of sales for a rapidly growing company, you are grappling with the question of expanding the size of your direct sales force (from its current level of 60 national salespeople). You are considering hiring from 5 to 10 additional personnel.
Based on the IRS actuarial table, Mario has a life expectancy of 20 years. If Mario receives 12 monthly payments of $1000 the first year, how much taxable income must he report on his tax return.
Explain the logic of the Ricardian view of government debt and evaluating its practical relevance.
A machine used to cereal boxes dispenses, on the average, ounces per box. What is the largest value.
Assume that the returns of these stocks are independent of each other. Find the mean and standard deviation of the total amount that this investor earns in one year from these four investments.
Excise tax is levied on the buyers of a good, then after the tax buyers will pay for each unit of the good.
Illustrate the solution graphically using Labor Supply / Labor Demand and Production Function diagrams.
As an analyst at the Treasury Department, you have been asked to predict the behavior of key macroeconomic variables for different scenarios on the state of policy between the US and Europe.
Clarke's workers are highly skilled artisans with a great deal of job mobility. What impact would the wage increase have upon the firm's employment.
Why do monopolistic competitors have a tendency to advertise much more than perfectly competitive firms?
Explain and show graphically the effect on the supply and demand for Bonds in a deflationary period. What is the effect on interest rates and the quantity of bonds.
They value campaign funding in terms of dollars spent. Therefore, after spending ci on a campaign.
Between two production technologies firm can choose a new product line. If it installs expertise 1, it's annually costs.
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