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You are an intern to the editor of a small-town newspaper in Mallsburg, Pennsylvania. Your boss, the editor, asks you to write the first draft of an editorial for this week's paper. Your assignment is to describe the costs and the benefits of building a new bridge across the railroad tracks in the center of town. Currently, most people who live in this town must drive 2 miles through thickly congested traffic to the existing bridge to get to the main shopping and employment center. The bridge will cost the citizens of Mallsburg $25 million, which will be paid for with a tax on their incomes over the next 20 years. What are the opportunity costs of building this bridge? What are the benefits that citizens will likely receive if the bridge is built? What other factors might you consider in writing this editorial?
What is Blue Rose's profit-maximizing output? What price does Blue Rose Inc. charge and is it efficient?
Re-do the previous exercise with an inverted triangular distribution of population. Show that if one region switches to a more egalitarian objective, the welfare of the worst-o¤ resident always improves no matter what the objective of the other re..
Given the following additional data: HPG T CSCO 5 year expected dividend growth rate(%): 8.44 4.04 4.68 Long term growth rate after 5 years (%) 5.5 2.0 5.5 Stock Price($) dividend($ annual) Hewlett Packard (HPQ) 25.63 0.48 AT&T (T) 29.39 1.74 Cisco S..
Interpret the following regression equation together with all the supporting statistics where Yt is the number of new cars sold (millions of units), X1t is the disposable income of consumers ($B), X2t is the price of a new car ..
an economy has an unemployment rate of4 percent and an inflation rate of 5 percent a year at point A on a graph. Some events occur that move the economy in a clockwise loop from A to B to D to C and back to A.
Suppose a person expects to live six periods. This person has no accumulated wealth and receives an income of $15 in each of the first 4 periods.After period 4 this person retires and receives no wage income.
The first is a 15-year to maturity bond with a 6.60% coupon rate, paid annually. The price of this bond today is 100% of face value. The second bond is a 20-year to maturity bond issued 7% coupon rate, paid annually. The price of this bond is 101...
Discuss rigorously with detail analysis that, Exact relationship, functional relationship and ceteris paribus clause are the major problems of Econometrics
To what extent have increases in U.S. real GDP resulted from more labor inputs? From higher labor productivity? Rearrange the following contributors to the growth of productivity in order of their quantitative importance: economies of scale, quant..
Given the problems Zappos may face throughout the season, how would you evaluate the best actions to takeat a given point in time? What metric(s) would you look at to come up with the optimal decision? What optimization model that you have seen or..
(The Multiplier and the Time Horizon) Explain how the steepness of the short-run aggregate supply curve affects the government's ability to use fiscal policy to change real GDP.
Many cultures use the idea of Santa Claus making a list of who is naughty/nice as a way to manage the behaviors of children (because those children on the "nice list" receive presents). Do you feel that this parental behavior is morally reasonable..
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