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In deciding to park in an illegal place, any individual knows that the probability of getting a ticket is p and the fine for receiving the ticket is f. Suppose that all individuals are risk averse (that is, U''(W)<0, where W is the individuals wealth).
Will a proportional increase in the probability of being caught or a proportional increase in the fine be a more effective deterrent to illegal parking? {Hint: Use the Taylor series approximation U(W-f)=U(W)- fU'(w)+ [f2/2]U''(W).}
Level of GDP per effective worker and explain whether this economy is following the Golden rule
Allan Sports sells snowmobiles in a Northern Suburb of the Twin Cities. For the third year in a row sales have been dismal.
Discuss the limitations of this model as an explanation of the effects of government expenditure on GDP.
The "Market" section of the Bloomberg website provides interest rate quotations for numerous currencies. Its address is www.bloomberg.com.
Each paper is to be an analysis on the recent economic events or economic reports from the supplemental resources or references. The focus of this assignment is to relate and analyze current events to basic principles of macroeconomics covered in thi..
Missy Walters owns a mail-order business specializing in baby clothes. Missy is confident the dollar amounts of all her orders are normally distributed or nearly so. Assume she knows the mean and standard deviation are $249 and $46, respectively, ..
How might a company's internet presence improve information problems? Can a company's internet presence worsen information problems? Give an example of a company that has an internet presence.
Mitt Romney and Newt Gingrich are two of the most likely candidates for the Republican nomination for President. One of the key strategic decisions they will make is how negative their ads should be. Assume the payout matrix (in terms of votes gai..
I have chosen to export beer to Japan. Japan continues to be one of the top generally beer-consuming nations in the world and consumers have high disposable income and there is an increasing demand for sphere beers in Japan.???
Total production (TP) and the level of natural real GDP (NRGDP) for a hypothetical economy are represented on the graph that follows. When real GDP is $525 billion, consumption is $420 billion, government purchases are $75 billion, and investment is ..
If the rate of return earned on reinvested funds is 15 percent also the industry reinvests 40 percent of earnings in the firm, what must be the discount rate.
Explain how does the Federal Reserve accomplish these goals.
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