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Q1.in signaling model, assume high school graduates are paid a stream of income whose present value is $200,000. College graduates are paid a stream of income whose present value is X. College education costs higher-productivity workers $50,000 and lower-productivity workers $150,000. What value of X will cause higher-productivity workers to go to college and lower-productivity workers to not go to college?
Q2. How can a business owner who earns $10 million/year from his or her business credibly claim to earn zero economic profit?
Q3. When and where did modern economic growth first happen? What are the major institutional factors that form the foundation for modern economic growth? What do they have in common?
Suppose that the only input used in the generation of solar energy is sunlight
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
Show how each of the following would initially affect a bank's assets and liabilities.
Similarities in the definitions of management quoted from authors of management textbooks
Think of any financial innovation in the past ten years
Two firms are located on the line and sell identical products. Consumers obtain K utility from consuming a product; assume that K is large enough that all consumers purchase from at least one of the firms despite the costs of transportation.
Quantity, whole revenue and profit when company charges different price in each market and exploits its total profit.
This document contains various important questions and their appropriate answers in the subject field of Economics.
The cause and effect on how and why there was a government shut down a month ago.
Explain an economy is initially in equilibrium at the natural level. The central bank increases the money supply.
The municipal swimming pool charges lower entrance fees to local residents than to non-residents. Conclude that non-residents must have for swimming at the pool than residents.
Analyze the USA financial meltdown that happened in 2008-2009. This crisis was partially caused by the reward systems that were in place for participants in the financial system. Identify the major participants in the financial system.
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