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A risk-neutral individual would:
prefer $5 with certainty to a risky prospect with the expected value of $5.
prefer a risky prospect with an expected value of $5 to a certain amount of $5.
be indifferent between a risky prospect with an expect value of $5 to a certain amount of $5.
prefer a risky prospect with the expected value of $0.50 to $5 with certainty.
What is the future worth of a series of even payment series of $1,674 made at the end of each 6-month period for 9 years at 6 % compounded semi-annually?
Suppose that expectation of reducing housing values cause households to decrease their demand for new houses and the financing that accompanies it.
Describe return to an investment in a college education. How would you go about measuring it. How would you decide it is good enough to warrant investment.
Top four firms in Industry B have market shares of top four firms in Industry B have market shares of 15,12,8 and 4 percent, respectively. Calculate four-firm c0ncentration ratios for two industries. Which industry is more concentrated.
Suppose the dollar interest rate and the pound sterling interest rate are the same 5 percent per year. What is the relation between the currency equilibrium $/£ exchange rate and its expected future level?
Calculate MPC, MPS and the Multiplier if consumption expenditure increases by $4,250 as a result of increase in income from $40,000 to $45,000.
How can you use these tools to decide best path for your company to pursue. Illustrate what are pros and cons of utilizing se tools.
Consider a market with two firms, each with constant marginal cost of $100 and facing a market demand curve of P=1000 - Q where W is total output of the two firms. Suppose they choose simultaneously, what is the Cournot Nash Equilibrium for this situ..
The slope of the short-run aggregate supply curve can be explained by:
A unique aspect of a market economy is that consumers and firms change their behavior largely in response to:
Suppose the country of Lilliput exported 229 billion dollars worth of goods while they imported 489 billion dollars worth of goods in the last calendar year.
a country that does not currently tax cigarettes is considering the introduction of a 0.40 per pack tax. the economic
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