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An entrepreneur needs funds for a project. He has funds of his own, but enough to cover the required investment of $100. If the entrepreneur doesn’t misbehave, the project will succeed with probability .9, yielding a gross return of 120 in one year. With probability .1, it fails and yields nothing. If the entrepreneur misbehaves, on the other hand, he obtains a private benefit of $14 in one year, while lowering the probability of success to .5. Lenders require a gross return of $1 in one year on $1 loaned today.
Japanese GDP in 2010 was 480 trillion yen (U.S. GDP, again, was $14.5 trillion). The exchange rate in 2010 was 87.8 yen per dollar. Contrary to China and India, however, Japan had higher prices than the United States: the price level in Japan (conver..
Those who use it to make ethanol and those who use it as animal food. Suppose the elasticity of demand differs between these two groups. Is a perfectly competitive corn farmer able to price discriminate? Why or why not?
Illustrate what could be related goods to health care. Illustrate what are the inter-relationship between these goods.
Which is a characteristic of the German health care system?
A recessionary expenditure gap in a mixed open economy can be measured as the extent to which cumulative expenditures
sometimes a bidder on a work contract may bid lower than what would maximize hisher profit from the contract and the
The president of your college believes that the cost of a college education is far too expensive for students to afford and has decided.
?The depreciation of currency will: Which of the following topics is best characterized as a macroeconomic issue?
Unemployment spells and long term unemployment. According to the data presented in this chapter, about 47% of unemployed workers leave unemployment each month. What is the probability that an unemployed worker will still be unemployed after one month..
The market wage rates for left-and right-handed workers are $10 and $15 per worker, respectively. The value of the marginal product of labor is 20 – 0.5L, where L is the total number of workers (it doesn’t matter if they’re left or right-handed). Wha..
Keeping your money in a bank seems like a good idea. However, from time to time, depositors lose confidence in banks. we learned that when many people lose confidence in a bank at the same time it is called a “bank run”, and when this happens to many..
The term ________ refers to a firm operating in a perfectly competitive market that must take the prevailing market price for its product.
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