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The construction of a hydroelectric dam will result in the permanent closure of a recreational park. The park has brought $4 million in revenues over the last two years. What is the expected total monetary loss under 4% annual interest rate if this park is permanently closed this year
Suppose GM reduces all of its existing workers from a 50 hour work week to a 40 hour work week but does not lay anyone off or hire anyone new. How will the unemployment rate change as a result
Suppose that a = 2, g = 0.02, the inflation rate is expected to be steady at pi = 0.03, and the tax rate is .40. What are the values of the equilibrium nominal interest rate and the before-tax expected real interest rate. what are the new values o..
Set up the current-value Hamiltonian for the representative household. Characterize the solution. Combine this solution with equilibrium factor prices, and derive the equilibrium path. Show that the equilibrium path displays nontrivial transitiona..
If the policy goal is to expand employment for low-skilled workers, is it better to focus on policy tools to shift the supply of unskilled labor or on tools to shift the demand for unskilled labor? What if the policy goal is to raise wages for thi..
Would it be even more efficient if the most popular spots such as Annapolis Rock had more highly priced access? Why do you think we don't see more market solutions to the tragedy of the commons?
The mean concentration of formaldehyde in air is 0.4 ppb, whereas that in seawater is 40 nM. What is the direction and magnitude of flux?
Given a sample of n observations, the investigator estimates β2 by calculating it as the average value of Y divided by the average value of X. Discuss the properties of this estimator. What difference would it make if it could be assumed that β1 i..
Explain why the determination of the corrosion rate in reinforced concrete is a critical parameter in all modern models for the prediction of life cycle.
Find the optimal monopoly price, the elasticity of demand at the optimal price, and the output distortion with respect to the perfectly competitive levels for the following cost and demand functions: a. Q(p)= a-p andC(Q)=cQ
A purely competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $37.50 per unit for all successive units. Does price exceed aver..
Find the equation describing the LM curve. Note that since I did not give you a specic P (and the LM curve is always drawn given a specic P), you will end up with an equation in three unknowns (Y,P,r).
A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number of phone calls made. Provider B doe not have a fixed service fee but instead charges $1
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