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Petra's utility is U = (W/1000)^(1/2), where W is her wealth in dollars. Currently her wealth is W = $1,200,000. If her car is totaled in an accident, her wealth will be reduced by $50,000. She thinks the probability of that happening is 5%.
Who pays the tax: Graphical model with interpretation? Then the mathematical model solution with interpretation: compare P1 with P2 with P1 + tax
Consider the following model of trade between Iceland and Finland. There are two goods: Fish and Wheat. The only factor of production is labor. Compute the equilibrium relative price of fish under free trade, and draw the budget lines for a typical w..
Many people have argued about the wisdom of the "TARP" program that was implemented late in the Presidential term of President George W. Bush with the full approval of the Congress. Briefly comment on the impact on the economy of this effort and expl..
If interest paid on the account was compounded annually, explain how much interest on interest was earned.
1) When a nation imports a good, its ________ surplus decreases and its ________ surplus increases.
Who is art for according to Marcel Duchamp? Who is art for according to Malevich?
Stocks and bonds-and checking accounts are all stores of value, but only checking accounts commonly function as mediums of exchange. and checking accounts are all stores of value and commonly function as mediums of exchange.
A store is offering a sale where if you buy two pairs of shoes at $30 each, you get the third pair for free. What is the marginal cost (in dollars) of the third
What is the employment rate? B. Suppose the government sets a minimum hourly wage of $8. How many workers would lose their jobs?
Suppose you work in a financial institution, how you would advise your clients.
Costa Rica is a “small” country and assumed to be unable to affect world prices. It imports blueberries at the price of 10 dollars per box. The Domestic Supply and Domestic Demand curves for boxes are: S = 60 + 20P D = 1160 − 15P. What happens to the..
What is "automatic fiscal policy" and how does it fit Keynesian fiscal policy to stimulate the economy in a recession, in terms of Government spending
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