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Consider an environment where an agent could be either employed E or unemployed U. Let’s normalize E + U = 1, so that E and U is interpreted as the fraction of people employed and unemployed at any given point in time, respectively. Conditional on being employed today, the probability of being fired is δ=.05; and conditional on being unemployed today, the probability of finding a job is ω=.5
a) What is the probability of staying employed? (b) What is the probability of not finding a job? (c) Suppose that we know that today (Monday) the fraction of people who are employed is 0.95, what is the fraction of people employed tomorrow (Tuesday)? (d) What is the steady state level of employment?
q.your oil company must decide whether to drill a well at a cost of 500000 on a piece of leased property or to sell the
q.consider a perfectly competitive market in which the market demand as well as curve is given by qd 20 - 2pd as well
Assume which incidence of HIV in the population is .005. Compute the yearly premium of the 1st policy.
For what values of Z does Heidi accept two independent plays of the bet? iii) is is possible for Heidi to reject the single bet but accept the aggregate bet?
An 83-year-old woman is placed at a small table in a dark corner of a trendy nightclub also is ignored by the staff.
The Governor of Arkansas has asked you (her crack economic advisor) to analyze how employment in trucking and poultry processing will be affected if the legislature passes a proposed law that will increase labor cost in both industries by ten percent..
Suppose a candidate who runs on a platform of soak the rich wins the 2012 presidential election. After being elected, he or she persuades Congress to raise the top marginal tax rate on the federal personal income tax to 65%. Use one graph to show the..
A Nash equilibrium is said to occur when,
A company is producing 15,000 units. At this output level, marginal revenue is $22, and the marginal cost is $18. The firm sells each unit for $48 and average total cost is $40. What can we conclude from this information?
Assume that the short-run cost and demand data given in the table above confront a monopolistic competitor selling a given product and engaged in a given amount of product promotion. Refer to the above table and information. If the firm sells 3 units..
Explain how does the subsidy affect consumer surplus, producer surplus, tax revenue, and total surplus. Does a subsidy lead to a deadweight loss. Explain
Choose three of the most effective alternative methods of government finance. Provide a rationale for your choices by explaining why they are the most effective methods, and analyze their impact on the economy.
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