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With the end of the Cold War, the U.S. government decided to "downsize" the military. Along with a pink slip, the government offered ex-military personnel their choice of $8,000 a year for 30 years or a lump-sum payment of $50,000 immediately. The lump-sum option was chosen by 92% of enlisted personnel and 51% of officers (Warner and Pleeter, 2001). What is the break-even personal discount rate at which someone would be indifferent between the two options? What can you conclude about the personal discount rates of the enlisted personnel and officers?
How do economists distinguish between the absolute and relative sizes of the public debt? Why is the distinction important? Distinguish between refinancing the debt and retiring the debt. How does an internally held public debt differ from an exte..
The shopping trip to Klang, however, involves transport cost of RM 50 and travel time (valued at RM 50). Considering the economic costs of shopping, which option is better, i.e., shopping in Kuala Lumpur or shopping at Klang, Selangor?
Assume that the world price of Good A is $8 per unit while its domestic price is $6, and the marginal cost incurred by domestic producers for producing one unit of Good A is $5. If the government imposes a tax of $3 per unit on domestic producers.
Suppose you are designed a new computer and want to make sure it is optimal for your needs. Random Access Memory can be added to your computer at a cost of $100 per gigabyte. For you the benefit of the first gigabyte of RAM is $800, and the benefi..
What are the causes of extreme poverty, and what policies have been most effective for improving the lives of the poorest of the poor?
Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $750,000, an operating cost of $60,000 per year, and a salvage value of $80,000 after its 2-year life.
High performance Bicycle products company in Chapel Hill, North Carolina, sampled its shipping records for a certain day with these results: Time form Recepit of order to delivery ( in days)
Making dresses is a labor-intensive process. Indeed, theproduction function of a dressmaking firm is well described by theequation Q = L - L2/800, where Q denotes the number ofdresses per week and L is the number of labor hours per week.
1. what is the GDP 2. what is the net domestic product 3. what is the national income 4. if real GDP in a particular year is $80 billion and nominal GDP is $240billion , what is the GDP price index for that year
suppose a single parent can work up to 16 hours per day at a wage rate of 10.00 per hour. various income maintenance
On your diagram, show the deadweight loss that occurs because the output level is determined by a monopoly rather than by a competitive market.
What is the major strategy for firms on multiproduct pricing? How would a firm producing many products ensure its ultimate goal of maximizing profits?
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