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Cost Sharing for Monitoring El Niño. Suppose the monitoring of El Niño s current costs a total of $12 billion per decade. Over a decade, early warning of the current s path would reduce its damages by $9 billion in the United States, $6 billion in Canada, and $3 billion in Mexico. (Related to Application 2 on page 648.)
a. Does any country, acting unilaterally, have an incentive to monitor El Niño?
b. Do the social benefits of monitoring exceed the costs?
c. Design a cost-sharing arrangement that will cause all three countries to support a monitoring system.
The average family in country A spends 60 percent of their disposable income on residence. The average family in country B spends 25 percent of their disposable income on residence. The average monthly salary in country A is $2,500 and in country ..
A lump-sum loan of $5,000 is needed by Chandra to pay for college expenses. She has obtained small consumer loans with 12% interest per year in the past to help pay for college. But her father has advised Chandra to apply for a PLUS student loan c..
Valuation relates to product liability because a judgment (estimate) must be made regarding the expected cost of defective products.
Discuss what you have learned during the the classical argument paper assignment and how it will assist you in upcoming papers.
An investment of $5000 in Biotech common stock proved to be very profitable. At the end of 3 years the stock was sold for $25000. What was the rate of return on the investment
The applicable discount rate is 7 percent. One annuity pays $4,000 on the first day of each year for twenty years. How much does the second annuity pay each year for twenty years if it pays at the end of each year.
This means the full cost of each shirt is $1.25. Calculate the socially optimal number of shirts to be cleaned.
What is the sign of the correlation between yt and yt-1? How about the sign of the correlation between yt and yt-2? between yt and yt-3? Do you see a pattern
Digital camers have taken over the majority of the point-and-shoot camera market. One of the important features of a camera is the battery life as measured by the number of shots taken until the battery needs to be recharged.
Ithaca is considering a new $50,000 snowplow that will save the city $600 per day of use compared to the existing one. It should last 10 years and have a resale value of $2000. To obtain a 12% rate of return, what is the minimum number of days per..
Now suppose that the gross national debt initially is equal to $2.5 trillion and the federal government then runs a deficit of $100 billion: i. What is the new level of gross national debt ii. If 100 percent of this deficit is financed by the sale o..
How does the increase affect the equilibrium interest rate?
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