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Assume there is uncertainty about the costs of disposing of the waste: There is a fifty-fifty chance that they will be $10,000 or #30,000. Discuss how this uncertainty affects the cost-benefit calculation, if the government is risk neutral, that is , it requires no risk premium to compensate it for bearing risk; if it is very risk averse, that is, if it requires a large risk premium to compensate it for bearing risk.
Assume the public holds a fixed amount of currency and the chartered banks have a desired reserve ratio of 10%. What is the ultimate change in the dollar size of loans caused by the action of the Bank of Canada? What is the ultimate change in the dol..
A market analysis conducted by SUNY Canton suggests the following market demand and marginal revenue relations: Public Demand: PPU = 225 - 0.005QPU and MRPU = 225 - 0.01QPU Student Demand: PST = 150 - 0.01QST and MRST = 150 - 0.02QST Total fixed cost..
Val-lok industries manufacture miniature fittings and valves. Over a period of 8 years, the costs associated with one product line were as follows: initial investment cost of $22,000 and annual costs of $20,000. Annual revenue was $24,000. What rate ..
Suppose Mike’s utility consists of consuming two ordinary goods: Hotdogs (normal good) and beer (inferior good). Quantity and price for hotdogs and beer are Xh, Xb, Ph and Pb and his income is I. Draw Mike’s indifference curve, budget line and show t..
Explain why do national income accountants compare the marker value of the total outputs in various years rather than actual physical volumes of production.
In essence, do you agree with each statement? Explain why or why not? The best test of the performance of two different regression equations is their respective values of the coefficient of determinations.
Equilibrium quantity must increase when demand
The event that changed many economistsí beliefs about economic equilibrium was: Which of the following will not shift the consumption function? According to classical economists, in times of unemployment the most appropriate counter cyclical, or stab..
Define the Quantity of Money theory and identify whether this is a Keynesian or Classical cornerstone. Describe what happens when, according to this theory, the money supply is increased.
As a means for less developed countries to attract the savings and investment necessary for economic growth and development, is short-term portfolio investment better than Foreign Direct Investment? Explain.
CAFTA (Central American Free Trade Agreement) will lead to free-trade between U.S. and Central America. Suppose there are two factors: skilled and unskilled labor and U.S. is skilled-labor abundant. There are two goods: apparel and computers, and app..
q1. between the first quarter of 2005 and the fourth quarter of 2006 the cpi increased by 7 percent while the gdp
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