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Suppose, as we did in class, that consumers live for two periods and can either consume, save, or pay taxes with their income. Derive the lifetime budget constraint for the individual. What kinds of things can we say about the lifetime budget constraint? What does it imply about the consumer? Will he make his consumption choices in periods 1 and 2 independently?
Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.4 million. The fixed asset falls into the three-year MACRS class. If the tax rate is 34 percent and the required retur..
A U-shaped average total cost curve implies what?:
Public goods are difficult to provide in the private market because they have the characteristics of:
What can be said about the benefits and problems of each dimension (economic, cultural, political and environmental) of globalization? Is globalization a positive force overall?
Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4. Assume also that the marginal physical product of the last unit of capital is 30 and the marginal physical product of the last un..
Examine the following EVM data for the Acme project, a hypothetical construction project, to view information on the past and future performance: Calculate the cost variance (CV), schedule variance (SV), cost performance index (CPI), and schedule per..
A paper company dumps non degradable waste into a river that flows by the firm's plant. The firm estimates its production function to be.The state environmental protection agency plans to impose a $7.50 effluent fee for each gallon that is dumped.how..
A normal good is being produced in a constant-cost, perfectly competitive industry. Initially, each firm is in long-run equilibrium. Briefly explain the short-run adjustments for the market and the firm to a decrease in consumer incomes. What happens..
The management of bank risk is a crucial function of management. What are the most important risk management principles that involve approving loans? Why do Adverse Selection and Moral Hazards make the underwriting process more complicated?
Today’s urban transportation planning process is being impacted by the President’s Stimulus Plan. High speed rail is one such option to congestion along the highways of urban areas. These projects have two sides to them. Discuss how this Stimulus Pla..
America is a very violent country, compared to countries like Great Britain and India. How do the theoretical explanations for aggression help explain this? How do the ideas of conformity, compliance, and obedience tie into this discussion?
Imagine that the mayor has hired you as a consultant to evaluate the increase in aggregate demand in the city where you live. Describe to the mayor one (1) aggregate demand and supply factor that would have the greatest impact on the economy of your ..
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