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A group of individuals each face a 1% probability of suffering a loss of $10,000, a 4% probability of suffering a $1,000 loss, a 20% probability of suffering a $500 loss, and a 75% probability of no loss.
What is the actuarially-fair premium.
When the Soviet Union, which had been a command economy, broke apart, an official of the new Russian government called an official of the American government and asked” “Who is in charge of bread distribution?” Consider the multiple steps (markets) i..
Consider a farmer who can either plant or market/consume his crop. Whatever amount he plants becomes a crop twice the size the following year. For example, if he plants seed from 2 ears of corn, he gets 4 ears of corn at harvest. Assume he starts off..
With the heavy focus on trade with China, it may be surprising to discover that Canada is the USA’s largest trading partner. Perhaps it is not the amount of trade between the US and China that is such a great concern as much as the growth of the trad..
Assume Fed expands money supply, however because public expect this Fed action, it simultaneously raises its expectation of cost level. Illustrate what will happen to output and cost level in short run.
Consider two bonds, bond A and bond B. Bond A has a face value of $1000, matures in one year and sells for $950. Bond B has a face value $1000, matures in one year, pays 6 percent per year and sells for $940. All work must be shown a. Explain how the..
Evaluate the Keynesian economists, besides John Maynard Keynes. Determine which economist you feel made the most significant contribution to economic theory. Justify your selection.
Draw the pre-intervention optimized supply and demand equilibrium. Explain and show what effect it has on the polis.
As a general rule, an increase in the capital available to a society. A market system (market economy) depends on the market to
Explain the basics of stakeholder theory as if you are talking to a friend. Should a corporation care about the interests of people other than shareholders? How would a corporation behave differently if it accepted a shareholder theory versus a stake..
How discrimination and institutional racism in (education, hiring, training, promotion, housing and criminal justic) reduces domestic output and income? hint: discuss how EACH(education, hiring, training, promotion, housing and criminal justic) contr..
A country is described by the Solow Model with a production function y =k1/2. Now suppose k is equal to 400. Now suppose that the fraction of output invested (or saved) is 50%. Assume that the depreciation rate is 5% and population growth is 0%. Is t..
Gasoline prices in the United States decreased significantly between 2008 and 2009. A decrease in the price of? gasoline, holding other things? constant, will cause which of the following to? occur?
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