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When the expected value of a course of action depends on several sequential events occurring, each of which is statistically independent, the resulting table for the overall value of each possible course of action is called a/an:
a. Depreciation schedule
b. Profit/loss diagram
c. Expected value distribution
d. Joint probability distribution
With the passage of the Affordable Care Act the U.S. government requires that everyone have some form of health insurance. One of the provisions of the law is that firms with more than 50 full-time workers must provide health insurance to those worke..
Assume Americans currently import more than they export. Illustrate the effect of foreign- ers becoming more optimistic about their future incomes. What happens to the quantity of Americans’ net imports? What happens to American consumption? Suppose ..
What possible effect does investment in excess capacity by incumbents have in determining the extent to which investments by entrants are sunk?
Technology transfer in the Solow model: One explanation for China’s rapid economic growth during the past several decades is its expansion of policies that encourage “technology transfer.” Draw a graph showing what happens to output in China over tim..
If the government decides to spend an extra $5 billion on fighter jets that they would otherwise have spent on road construction, and the MPC = 0.75, what is the effect on AD?
Each firm has the usual U-shaped average-total-cost curve. The market is in long-run competitive equilibrium.
The law of diminishing returns says that at some point, as the firm's output increases, marginal product begins to fall and can eventually became negative. Why does this happen? Price discrimination allows a firm to charge different price to differen..
The topic of banking and its role in the economy has been an interest of many students in this class due to the experiences during the 2008 recession. Many find this chapter enlightening as a way to better understand the economic history of 2008/2009..
Choose a country (not the United States or Canada) and identify some political and currency risks of that country and discuss why a U.S. company would invest (for example, build a factory) in that country. Also discuss some of the various internation..
In 2016, economists forecast the U.S. MPS will be 0.15 and the MPM will be 0.10. Estimate the maximum overall total effect on national income of the following two changes in fiscal policy If a decrease in govt spending of $100 billion and a decrease ..
Jen, Eric, and Kurt are all buyers of chain saws. Jen’s demand function is DJ (p) = 520 − 13p, Eric’s demand function is DE(p) = 40 − p, and Kurt’s demand function is DK(p) = 200 − 5p. Together, these three constitute the entire demand for chain saws..
Find the lump sum deposited today that will yield the same total amount as this yearly payment made at the end of each year for 20 years at the given interest rate, compounded annually. $55,000 at 5%.
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