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Suppose that you have utility as a function of income (I) given by the equation: \(U = \sqrt{501}\)
Consider a lottery that provides a payoff of $0 with probability 0.75 and $200 with probability 0.25.
a) What is the expected value of this lottery?
b) What is the expected utility of this lottery?
c) What is your utility if you receive a sure payoff of $50? Compare this to the expected utility of the lottery and determine if you are risk adverse.
According to Colander, the perfect definition of economics. The three central coordination problems any economic system must solve.
What is a discouraged worker? Are they included in the basic unemployment rate? Are they included in any measure of unemployment? How has the number of discouraged workers changed since 2008? How does the exclusion of the discouraged worker affect..
You have done some research and believe that the master's degree will add $6,000 per year to your salary for the next 10 years of your working life, starting at the end of this year. From then on, after the next 10 years, it makes no difference.
Explain and calculate the current account balance and explain and calculate the capital account balance and did U.S. official reserves increase or decrease? Explain
Compute Brazil and the United States with the state of the economy.
Assume Venezuela imports TV sets at a price of $150 each. Under free trade, how many sets does Venezuela produce, consume, and import.
Utilizing an appropriate diagram, show and explain briefly how a rise in the minimum wage could result in higher employment
Illustrate what trends are in the data sets. I need to support my assertions of trends with statistical evidence.
Describe the functions also role of law in business and society.
Suppose that the trade pattern of a country is that it exports foodstuffs and imports fancy sports equipment. Can you make a case that trade acts like a regressive tax in its impact on the distribution of real income and welfare within the countr..
Use Internet, and other sources of literature and locate an article concerning trends in consumption patterns.
Suppose government increases autonomous taxes and defence expenditure by the same amount. Will real GDP increase in the short run? Why?
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