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You have $1,000, which you can invest in a risk-free investment, earning 2% with certainty. Alternatively, you can invest in a project that has a 30% chance of losing $500, and a 70% chance of gaining $400.
(a) What is your expected wealth with each investment?
(b) What is your risk premium with each investment?
Who is hurt and who is helped by an increase in the legal minimum wage? Under what circumstances might a higher minimum not reduce employment?
In The Wealth of Nations, Adam Smith wrote, "Every individual endeavors to employ his capital so that its produce may be of greatest value. He generally neither intends to promote the public interest, nor knows how much he is promoting it.
q1. given an exchange rate of sf1.25 1 how do the car prices of both countries compare?q2. the payoff matrix of
You produce goods in a competitive market. You discover that the marginal cost of the last good you produced is the same as the market price for the good. You should:
Consider the following market for used cars. There are many sellers of used cars. Each seller has exactly one used car to sell and is characterized by the quality of the used car he wishes to sell. Let θ ∈ [0, 1] index the quality of a used car and a..
Suppose you are the owner-operator of a gas station in a small town. Over the past 20 years, you and your rival have successfully kept prices at a very high level.
If average costs and marginal costs are constant then
List the four principles of effective intervention in criminal justice in sequential order. What do principles mean and do they work? If so why or why not.
List the economic benefits of, and problems with, subsidized college education. Examine subsidized college education by considering answers to the three basic economic questions: What to produce with limited resources? How to produce the goods and se..
q1.if the inverse demand function toaster is p60-q what is the consumer surplus if price is 30?q2. statistically
Suppose a wage increase from $25 to $27 an hour increases the number of job applicants from 52 to 66. Illustrate what is the price elasticity of labor supply.
What is the most you would be willing to pay for one of these licenses, if you know that you get to choose your level of output before the other licensee does, also knowing that your choice is observable by the other licensee?
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