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What is the difference between programmed and non-programmed decisions? Do you think that applying creativity in your decision making is more of a benefit or a risk? Why?
What proportion of the tax is paid by the seller? What proportion of the tax is paid by the buyer? compute income elasticity Is your good a normal good or an inferior good?
Comment on this trade-off between equity and growth. Explain how would you go about resolving the issue if you were the president of a small poor country.
Consider the following model of demand for insurance (identical to that studied in class). Risk-averse individuals maximize expected utility of wealth where wealth is random due to a loss L, that occurs with probability π. It is assumed that insuranc..
Why does an individual's demand curve normally slope down. Why does a market demand curve normally slope down. Why does a firm's supply curve normally slope up. Why does a market supply curve normally slope up.
Lee Inc, is considering a robot that will cost $6,000 to purchace. At the end of it 9 year life, it salvage value will be $1,000. The robot will need to overhauled in year 5 at a cost of $3,000. O&M costs per year will be $1,000. The robot will gener..
Consider a profit-maximizing monopoly pricing under the following conditions. The profit-maximizing quantity is 40 units, the profit-maximizing price is $160, and the marginal cost of the 40th unit is $120.
Define public goods. What is the free rider problem? Give several examples of public goods.
Homework on Ricardian Model. Suppose in the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. Show t..
If you purchased a $50 face value bond in early 2015 at the then current interest rate of .10 percent per year, how much would the bond be worth in 2025?
Explicate which among the policies is most effective and least effective for this nation.
How will the real interest rate affect the cost of your car loan? Let’s assume that the old clunker you have been driving needs $500 in repairs in order to pass an annual car inspection. The lowest interest rate you find on a five-year car loan is 10..
Examine the price elasticity of demand for the product(s) your firm sells.
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