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Good drivers have a 20% chance, and bad drivers have a 50% chance, of getting into an accident. A car is worth $900, and an accident would reduce its value to $400. Both types of drivers have utility U = (car value)0.5. What is a bad driver's expected utility without insurance?
In principle, the government could impose separate minimum wages on distinct occupations. Suppose the government imposed a minimum wage of 20 percent over their respective market wages for ditch-diggers and university professors.
Should the State of Texas implement term limits for our members of the appointed boards and committees, since most boards and committees handle the day-to-day operations of state government? Why?
Briefly explain how each of the following factors affect 17 year old Bob's decision to go to college:his discount rate, the difference in labor market earnings in each year post-college between what Bob would earn with and without the college degree,..
Interest rates on U.S. treasury bills are typically much lower than interest rates on U.S. treasury notes and bonds. If the federal government wants to reduce the interest charges it pays when it barrows money, why doesn't the treasury stop selling t..
how should he change his bundle to reach his optimum? Explain your answer using the marginal utility condition at the optimal choice.
For a region, you are given the number of deaths, the number of deathes related to alcohol, the number of deaths related to painkiller opiates and the averge mid-year population. What is the equation to calculate the crude death rate for the region? ..
A profit maximizing monopolist faces a demand function given by Q(p)=70-p. The cost function is C(q)=5q. Suppose that the government introduces a tax of $10 per unit of output. As a result of the tax, the monopolist will? (increase the price to what?..
What does the Taylor rule imply that policymakers should do to the fed funds rate under the following scenarios?
The concept of balance of power is fundamental in international relations. What does it mean? How meaningful can it be at the beginning of the 21st century, given the impact of globalization and modern warfare in which one's opponents may not be atta..
Calculate the equilibrium buyers' also sellers' price with no sales tax also then with the 20% tax Supposed above.
The following is a list of statements relating to the impact of free trade on wages and employment. Indicate whether the statement is true or false by dragging and dropping the appropriate term into the boxes provided. Free trade does not generally b..
Suppose that the income tax in a certain nation is computed as a flat rate of 5 percent, but no tax is levied above $50,000 in taxable income.
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