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1.) Suppose a project has two possible outcomes. There is a 70% chance that it brings a profit of 10,000. There is a 30% chance that it brings a profit of 4,900. Suppose a decision makers utility function can be described by U(w)=w^0.5. What is this project's certainty equivalence for this decision maker?
2.) If as price decreases by 8 percent, total revenue increases by 5 percent, what is true about demand?
Explain why these points are unique on this indifference curve. Please use at least 3 properties of indifference curves and any of the assumptions regarding utility to justify your response.
In regards to CANADA explain the importance of international economic policy coordination for the world’s financial system AND identify the problems confronting international economic policy coordination
Policymakers sometimes propose laws requiring firms to give workers certain fringe benefits, such as health insurance or paid parental leave. Let's consider the effects of such a policy on the labor market. Why might the labor-supply surve shift in r..
When Better Beds produces 40 beds per day, its average variable cost is $600, its average total cost is $800, and its marginal cost is $700. 9.1. Based on this information, use the red points (cross symbol) to plot Better Beds' average fixed cost (AF..
One assumption of the supply and demand model is that all goods that are bought and sold are identical. Why do you suppose economists commonly make this assumption? Does the supply and demand model lose its usefulness if goods are not identical?
How much would the owner of a building be justified in paying for a sprinkler system that will save $750 a year in insurance premiums if the system has to be replaced every 20 years and has a salvage value equal to 10% of it's initial cost? Assume mo..
You continue to use an old machine tool that was bought four years ago for $15,000. It has been fully depreciated but can be sold today for $2,000. The existing (old) machine tool can be sold today for $2,000. You purchase a brand new machine tool at..
Which of the following is NOT a main role of a nonstate actor? Which of the following inventions assisted in the creation of the modern state? The realities of globalization are reflected in which type of sovereignty? The dependency theory states tha..
Marketing research over the internet has increased significantly in the past decade. Outline and then discuss the strengths and weaknesses of marketing research conducted online with respect for a foreign or domestic airline company of your choice.
a) You are interested in looking at the impact of higher prices of imported oil in the overall cost of living. b) The government is interested in whether increases in defense spending are affecting the price level.
The expected value is. You want to run a difference-in-difference experiment with a price increase for your lawn chairs in Miami. If you are worried about "leakage" with your control group, a poor comparison city would be
The money multiplier equals 1/R, where R represents the quantity of reserves in the economy. If the money multiplier is 2 and the Fed buys $50,000 worth of bonds, what happens to the money supply? What does the Fed auction at the Term-Auction ..
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