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You are offered 2 investment opportunities. With opportunity you can gain $200k with probability 0.6 or lose $100k with probability 0.4; you can gain $50 with probability 0.3 or gain nothing with probability 0.7.
Which investment opportubity do you choose?
Suppose farmers can use their land to grown either wheat or corn. The law of supply predicts that an increase in the market price of wheat will cause:
A University wishes to create an information system for recording the results of students. When a student joins the university he or she registers on a particular course. Each student is also assigned an Advisor of Studies. Each module is assigned to..
Your company has immediately acquired another company which has locations in Quebec also Paris.
You are working for a company that is considering purchasing a new piece of equipment that will reduce operating costs by $4,000 annually. If the purchase price is $50,000, and it has a 25 year life with a salvage value of $5,000, what is the present..
What are the limits to U.S. long-term economic growth? Is there anything that our government can do to address these limits, or would it be a bad idea to try?
You are considering the purchase of a new high-efficiency machine to replace older machines now.
Crepe Creations is considering franchising its unique brand of crepes to stall-holders on Hermoza Beach, which is five miles long. How many franchises should now be awarded if we make the standard assumption that the effort costs of the stall holders..
Which of the following are positive economic statements and which are normative? Explain. a) Higher gasoline prices cause the quantity of gasoline that consumers buy to decrease. b) Everyone should enjoy open access to health care. c) A comparison of..
Consider an economy with the following Cobb-Douglas production function: derive the equation describing labor demand in this economy as a function of the real wage and the capital stock.
The theoretical model of the inter temporal budget constraint for the U.S. economy as a whole suggests that the most common pattern seems to be that:
Suppose that an individual has a utility function U(c) = c 1=2 : They have 400 dollars. With probability 0.1 they get sick, which results in complete loss of their wealth (their wealth becomes 0. a. What is their expected wealth? What is their expect..
Student Emergency Financial Services, Inc., which makes small loans to college students, offers to lend $550. The borrower is required to pay $42 at the end of each week for 16 weeks. Find the interest rate per week. What is the nominal interest rate..
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