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Oskar's preferences over gambles in which the probability of events 1 and 2 are both 1/2 can be represented by the von Neuman-Morgenstern utility function 0.5x5 + 0.5y5 where x is his consumption if event 1 happens and y is his consumption if event 2 happens. A gamble that allows him a consumption of 9 if event 1 happens and 25 if event 2 happens is exactly as good for Oskar as being sure to have an income of:
(a) 12.5.
(b) 9.
(c) 16.
(d) 17.
(e) None of the above
Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, illustrate what was the real interest rate you paid.
Use a .01 level of significance to test if there is a difference in the mean production of the three assembly lines. Develop a 99% confidence interval for the difference in the means between Line B and Line C.
When the farmer makes this discovery, what happens to the opportunity cost of wheat, measured in bushels of corn?
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The time series Xt is generated through the ARIMA model. Where B is the back-shift operator, and at is white noise.
Explain how will this combined tax-transfer policy affect aggregate demand at current prices.
Show why this equilibrium point is unique, i.e. if we are not at point E, illustrate what would happen in this economy.
Illustrate what fiscal policies also monetary policies would be appropriate at this time. You must use at least one article. Use references also APA.
q. firms like papa johns pizza hut as well as dominos sell pizza and other products that are differentiated in nature.
q1. relate opportunity costs to why profits encourage entry into purely competitive industries and explain how losses
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