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Suppose Jane has a one third chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Jane does not become disabled, she will earn her usual salary of $60,000. Jane has the opportunity to purchase disability insurance which will pay her her full salary in the event she becomes disabled. On average, how much would such a contract cost the insurance company (per person).
question 1 one tradeoff society faces is between efficiency and equality. elaborate each term with suitable examples.
Illustrate what are the factors that determine the demand for and provide of money.
Consider the following multiplicative demand function where QD = quantity demanded, P = selling price, and Y = disposable income:
Draw 4 budget lines for food and shelter as directed. The consumer has $500 income, faces an absolute price for shelter of 10, and a budget line slope of -5. (Shelter is on the horizontal axis.)
Look at the inflation adjusted data also identify the periods of negative real economic growth. Illustrate what might have caused every of these periods of economic decline.
Explain how do you think higher demand has affected equilibrium wage. In which direction do you think labour supply and demand shifted.
Executives estimate, for the first year, that they will have gross revenues of $500K, total costs of $300K, $30K in tax deductions and a one-time start-up credit of $8K. What will the company pay in income tax?
Pete borrows $10,000 to purchase a used car, He must repay the loan in 48 equal end –of-period monthly payments. Interest is calculated at 1.25% per month.
He is fouled attempting a three-point shot and is awarded three free throws. Assuming each free throw is independent, what is the probability that he makes at least two of the free throws?
Suppose the RBA were to implement a simple rule for monetary policy, such as one that makes the monetary aggregate M3 rise at a steady rate of 3% per year. When would this rule work and when would problems occur with such a rule?
What do you understand Spencer and Kate are the only two demanders of lemonade.
What happens to the price level pt when the money growth rate m changes, holding the current money supply mt constant?
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