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Suppose the probability of a worker losing his or her job in a year is 2%. The probabil- ity of someone unemployed ?nding a job within a year is 40%. What is the equilibrium un- employment rate? What happens if the government takes measures to free up the labor market that will double the chances the unemployed have of ?nding a job and also double the chances of those with jobs becoming unemployed?
Why would nations favor fixed vs. floating exchange rates for their currencies? Why do some developing nations have a "fear of the float"
Oligopolistic models are based on behavioral assumptions. One behavioral assumption associated with differentiated product markets is that price increase will not be matched but price decreases will be matched. This rather pessimistic view of pricing..
Perfectly competitive firm, a monopolist that is confronted with fixed costs in the short run should produce versus shut down if the total revenue that it can generate is sufficient to cover
In each case, do you think the household is better of f or worse off, or is the answer ambiguous? If ambiguous, what does the answer depend on?
Considering a two-player, sequential game where each player can choose to play right or left. Player 1 moves first, and player 2 observes 1’s actual move and decides to move up or down. If both of them moves left, then payoffs for player 1 is $-5 and..
Assuming that Amazon's internal figures are correct, compute the arc elasticity of demand for the change in price from $14.99 to $9.99 by using the corresponding quantity numbers from the article.
Standardization within global operations had shown remarkable results. Could the same mechanisms be transferred to sales, marketing, and R&D without compromising creativity?
a family decides to save for the college education of their kindegradener starting with her 6th birthday. they would
In the previous problem, assume that the closing cost for refinancing is $4,000, which you agree to be added to the balance of your loan. What range of mortgage rates makes the refinancing financially to your advantage?
HP provided AAA with sophisticated equipment and reliable repair service, for several years. AAA returned a failed piece of equipment. A meeting was held which included Juanito Rios, AAA's representative; Sonia Martinez
Suppose that there is a temporary, but significant, increase in oil prices in an economy with an upward-sloping sras curve. if policymakers wish to prevent the equilibrium price level from changing in response to the oil price increase, should they i..
The characteristics of the Perfect competition model are flawed by to many inaccuracies and offer little or no relevance to the real world
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