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Question: 1. Conside rthe general effect of the discount rate on the dynamic efficient allocation of a depletable resource across time. Suppose we have two versions of the two-period model discussed in Chapter 6. The two versions are identical except for the fact that the second version involves alower discount than that of the first version.
a. What effect would the higher discount rate have on the allocation between the two periods and the magnitude of the present value of the marginal user cost?
b. Explain the intuition behind your results.
a. in the presence of an underground economy likely to result in a gini coefficient that overstates or understates
Why might you be willing to make a loan to your neighbor by putting funds in a savings account earning a 5% interest rate at the bank and having the bank lend her the funds at a 10% interest rate, rather than lend her the funds yourself?
"Wal-Mart is a low-wage firm and this indicates that it exploits its workers." Which of the following should cause one to question the validity of this statement?
Estimate the monthly payment if the car is purchased with a $15,000 down-payment and estimate the down-payment required to keep the monthly payment at $550
Using the concepts of demand and supply analyse the change in the trend of healthy drinking for fizzy & healthy drinks.
What (if anything) would be the equilibrium if firms had Bertrand conjectures throughout? (Note well: The number of firms is set and then firms compete.
Many cities have experienced a substantial decrease in the amount of garbage being collected after they changed from levying a tax on each household to pay for the pickup to charging a fee for each bag or can picked up. Would this have been the resul..
1. consider the budget set of an individual who consumes health care hc and all other goods og . set up the equation
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If the central bank cannot change output and unemployment through systematic money supply changes and its induced changes in the anticipated in?ation rate, should it try to do so by changes in the unanticipated in?ation rate? If such unanticipated..
What would the new price have been? What do you think the new price of bread was? What was the new value of the GDP deflator for the Seven Kingdoms?
Examine the costs of production for Amazon Inc. Describe market structure for this firm and analyze how this affects the firm's ability to influence the market.
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