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A patriotic group of ?re?ghters is raising money to erect a permanent (i.e., in?nite life) monument in New York City to honor those killed in the line of duty. The initial cost of the monument will be $150,000, and the annual maintenance will cost $5000. There will be an additional one-time cost of $20,000 in 2 years to add names of those who were missed initially. At an interest rate of 6% per year, how much money must they raise now in order to construct and maintain the monument forever?
Maureen has the same income and faces the same prices as Sam and Bruce, but Maureen views 1 cup of orange juice and 1 cup of apple juice as perfect complements. Find Maureen’s optimal consumption bundle. How much additional income would Maureen need ..
Because their countries have similar institutions, the price paid for a computer in Germany and the United States are about the same when converted into the same currency.
Suppose the production of electricity by a utility generates pollution that harms others. Suppose also that Coase bargaining can occur between the utility and the victims of pollution but that the utility has not been legally liable for the damages f..
Last year, $100 million in outstanding bank loans to a developing nation’s government were not renewed, and the developing nation’s government paid off $50 million in maturing government bonds that had been held by foreign residents.
Grapes must be harvested by hand. This production function is characterized by fixed proportions - each worker must have one pair of stem clippers to produce any output. Suppose a vinyard owner currently has 20 clippers. If the owner wishes to utiliz..
An office building should last 60 years, but this owner will sell it at 20 years for 40% of its construction cost. For the first 20 years it can be leased as Class A space, which is all this owner operates. When the building is sold, the land’s cost ..
If the government establishes a quantity subsidy on the consumption of a good, it means that the consumer has to pay for each unity of the good its price minus the subsidy. The government decides to impose a quantity tax of t on good 1 and a quantity..
If the natural rate of unemployment is 4 percent and the actual rate of unemployment is 5 percent, Okun's law states that the output gap is ________ and the economy is in a(n) ________.
The Sequester is probably a bad idea. Use the IS-MP model to explain what should happen to the economy if the government cuts spending by 1 percentage point of potential GDP.
Utilitarianism is a deceptively simple moral theory that has quite a bit of intuitive appeal. But it also has its share of problems. How plausible do you find this account of the right making feature of acts? Clearly and carefully explain your answer..
What criteria would you apply to determine where such a policy is or is not successful. Judging from your own stated criteria, was Japan's exercise successful. Why or Why not.
Calculate the t-statistics for each variable and explain what inferences can be drawn from them. If R2 of this equation is 0.25, what inference can be drawn from it?
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