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A pension fund manager anticipates that benefits of 1 mil Euros per year must be paid to retirees. Retirements will not occur until 10 years from now. Once benefits will be paid, they will extend for 30 years. What is the present value of the pension liability if the appropriate annual rate of interest for plan liabilities is 5% compounded annually?
Find out QD and QS when cost of good X is $12.00. Is re a surplus or shortage. Illustrate what should happen to cost of Good X to drive it to Equilibrium.
Assess the issue of illegal immigration using a number of different ethical principles, such as the principles of rights, utilitarianism, and justice. What does each principle have to say about the issue of illegal immigration.
The price of a new model of iPod tends to fall significantly a year after it is first introduced. Suppose Jane bought an iPod as soon as it was introduced (a year ago) and paid a premium price for it. Now she wants to buy a new battery charger. Which..
The effects of a quota would not include. Which of the following would lead to diseconomies of scale?
Discuss three ways that parties organize American politics. Consider how politics organize our thinking, campaigns and elections, and Congress. Use an example from current events to illustrate each one of these dimensions.
Device A costs $100000 initially, whereas devise B costs $140000. Maintenenance will be $4500 for devise A and $2750 for devise B in the first year. These maintenance costs will increase 12% per year.
Full employment occurs when all the unemployment is frictional or structural. Most economists do not agree about the size of the natural unemployment rate and the extent to which it fluctuates. At the natural unemployment rate, there is no cyclical u..
An interesting example of strategic behavior comes from a 1997 article about Microsoft’s investment in Apple (New Straits Times, 1997). The article is included in the Required Readings list. What market structure do these firms operate in? Why did Mi..
In 2012, Balnur taught music and earned $20,000. She also earned $4,000 by renting out her basement. On January 1, 2013, she quit teaching, stopped renting out her basement, and began to use it as the office for her new Web site design business.
In 2010, U.S. investors purchased $50 billion in foreign assets, and foreigners purchased $100 billion in U.S. assets such as stocks and Treasury bills. In addition, U.S. businesses invested $150 billion in foreign factories and operations, while for..
Analyze the differences between short and long run production for a Perfectly Competitive Firm. In your analysis, explain the theoretical conditions that govern the market structure, market conduct and market performance of a perfectly competitive fi..
During the Reagan administration, the Laffer curve was used to argue that:
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