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The United States makes up approximately 4% of the world population but generates more than 20% of its income. The most recent number is $52, 587 per person versus a world average of $10, 163. React to this as a Utilitarian, a Rawisian, and personally. Be sure to make clear in each of the first two cases how this reflects that school of thought. Feel free to say whatever you feel like with respect to the third.
The intuitive criterion by Cho and Kreps is a refinement to minimise the set of perfect Bayesian equilibrium in signalling games. What would a simple and intuitive example to explain this criterion be?
You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research AT&T spends $15 million on related paper work and compliance costs. Depending on the locale, telecom taxes can a..
Discuss the advantages and disadvantages of financial statement analysis. Also discuss how it can help a manager make decisions and how it might mislead you?
In times of a struggling economic situation, determine the key steps that the Federal Reserve should take to help stabilize the economy. Next, explain how your proposed steps will affect money supply, interest rates, inflation rate, aggregate demand,..
In a two good, two-country world, a country has a comparative advantage in any good for which it has a:
Explain the effect on demand caused by the following: Why do supply curves slope upward? Explain? What is the difference between a change in supply and a change in demand? Explain the concept of the market equilibrium. What happens when price is set ..
You buy a bond for $1118 that pays $20 interest ever 6 months. It will reach maturity in 9 years at which time it will return its face value of 1000 plus the final $20 interest payment. What is the pre-tax annual rate of return on this bond? Estimate..
How many Uno’s does it currently take to purchase 1 unit of FX in Country 1's FX market? Has the Uno appreciated or depreciated? What is the new value of Country 1's real exchange rate (R)? Show your calculations to obtain full credit.
The following calculator shows the supply curve for sedans in an imaginary market. For simplicity, assume that all sedans are identical and sell for the same price. Consider the previous graph. Suppose that the price of a sedan decreases from $ 26000..
My income decreased by 25% and I purchased 10% more Cheez-Its. What is my income elasticity of demand for Cheez-its? Are Cheez-Its a luxury, normal, or inferior good in this case? Show your work to receive full credit.
Suppose the economy is in an inflationary gap. Which of the following public policies would not help the economy get back to potential real GDP?
Adam and Eve submit a married-filing-jointly return to the IRS. During the year their two jobs provided them with a combined income of $123,000. They had their second child during the year, and they plan to use the standard deduction of $9500 applica..
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