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Consider the following generalizations. Are they true or false? Support your answer with an argument that follows Rules 7-11 in our ARFA textbook. You may need to do a little bit of research to complete this exercise. If you can’t find the examples to support your initial answer, even after doing some research, you may need to change your answer! No matter what generalization you’re considering, actively look for exceptions to that generalization. Sample Exercise: Illegal drugs are safer than alcohol. This generalization is false. While it’s arguable that some drugs, such as marijuana and certain hallucinogens, are safer than alcohol, most illegal drugs are more dangerous than alcohol. Cocaine, crack, methamphetamines, opium, and heroin are particularly dangerous because they are all highly addictive, they do serious damage to the body, and it’s easy to overdose on them. Ecstasy can cause brain damage, and impure ecstasy can be lethal. While alcohol is addictive and can damage your body or kill you, it is not as addictive or damaging as these drugs. Thus, in general, illegal drugs are not safer than alcohol. This response does two things. First, it states whether the generalization is true or false. Then, it gives an argument to support that claim. The argument does a reasonably good job following each of the rules in Section II. It gives many examples (Rule 7), which are representative of the most widely used illegal drugs (Rule 8). While it doesn’t say how many kinds of illegal drugs there are (Rule 9), we can probably rely on the reader to know roughly how many kinds of drugs are left out. The argument does not give any statistics to support its claim, which means that it doesn’t give any misleading statistics (Rule 10), although well-chosen statistics could have strengthened the argument. The argument does mention some specific counter examples (Rule 11), but only to point out that there are only a few of them. Respond to the following generalizations: 1. Most U.S. presidents were born in Ohio or Virginia. 2. Classical music is boring. 3. Skydiving is dangerous. 4. All generalizations have exceptions.
Explain why one can refer to corporate debt as a covered call on the value of a corporation with a strike price at the level of the debt (principal plus interest). You can use the unit trust a “corporation” in your answer.
For the project shown in the following table, calculate the internal rate of return. Then indicate, for the project, the maximum cost of capital that the firm could have and still find the IRR acceptable. What is the project's IRR?
Suppose that a company produces output according to the following production function: Q=0.5L2. Define & calculate the marginal product of labor. Define and calculate the average product of labor.
Explain Carver Memorial Hospital's surgeons have a new procedure that they think will decrease the time.
Gator Fabrics Inc. currently has zero debt (i.e., wd = 0). It is a zero growth company, and additional firm data are shown below. Now the company is considering using some debt, moving to the new capital structure indicated below. If this plan were c..
U(x,y)=3x+y, where x and y represent the quantities of two goods, X and Y. The ocnsumer has I=60 , to spend on the two goods, and good Y costs Py=2 per unit. The price of good x, Px is also exogenous. Calculate the consumer's elasticity of demand for..
Suppose that we are interested in the effects of police on crime using data from a random sample of US counties. We plan to regresses the county's number of crimes per capital on the per capita size of the country's police force. This regression does..
Distinguish between a balance-of-payments surplus and a balance-of-payments deficit in terms of payments of official reserves.
Does the law of diminishing marginal returns apply to this firm's production process. If so, explain why and find the quantity of labor at which diminishing marginal returns.
The American Baker’s Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase in the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent..
International trade has pros and cons. Economists generally support free trade. International trade has played a significant part in promoting economic development and technology transfer among countries.
The Lemon Test involves the Supreme Court's interpretation of which of the following constitutional provisions?
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