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Assume an individual has income of $100,000, and has a 5% chance of incurring a $100,000 loss due to an adverse medical event. His utility function is represented by: U=C14.
In these problems, you are given income in different "states of the world". From there, you assume the price of consumption goods is $1 per unit.
In this set-up, how many units of consumption goods could you buy if there is NOT an adverse medical event?
The new owner assumed the balance of the loan on the lot and paid Bill $2500. What rate of return did Bill receive on his investment?
"Child Labor should universally outlaw" Are you in favour of or against this statement? Explain three different arguments with data in support of your choice.
Comment on this statement: "People care about real interest rates, not nominal rates. Therefore, money demand should depend on the difference between the real r
Other things remaining unchanged, advertisement would likely make demand for a good more price elastic. The cross price elasticity demand for a good with respect to the price of a complementary good is negative. With capital measured along the vertic..
Assume there is a market with only two profit maximizing companies (duopol) where each company has MC = AVC = 20 and no fixed costs. Also assume that market demand is Q = 100 - 0.5p. If both companies compete and chooses their given supply quantities..
Government increases its spending by $2 billion and raises taxes by $1billion. Illustrate what happens to equilibrium income.
In the prior unit, systems planning, you prepared a feasibility study and proposed a broad solution to problems you identified. In the systems analysis phase you will develop a model of your proposed system. This phase applies modeling techniques ..
Under what circumstances should employees be ineligible for public or private disability and life benefits? Discuss the rationale for your answer. Are the expenses associated with providing public and private programs serving the best interests of so..
Suppose that firms’ marginal and average costs are constant and equal to c and that inverse market demand is given by P = a – bQ, where a,b>0. Calculate the profit maximizing price-quantity combination for a monopolist. Also calculate the monopolist’..
1. Copy/paste any items from the following list that you think are included in GDP into the first column of the table below:
Explain what is meant by the term principal-agent problem. Have you ever worked in a setting where this problem has arisen? If so, do you think that increased m
There are three ice cream vendors who are deciding where to locate on a beach. The only decision that they have to make is where to locate the store that they have to run. There are 10 positions available on the beach and costumers are uniformly dist..
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