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Steve Slacker is age 25, has an MBA degree, but is not working. Instead he is living at a major ski area, using the $2,000 per week he gets from his wealthy family. The family, however, seeing that Steve is becoming a permanent slacker, ends his weekly payment. As a result, Steve chooses to take a job that pays $1,000 a week for 40 hours or work.
a) Construct a single income-leisure choice graph to show Steve’s situation before and after his parent’s decision.
b) Briefly summarize the outcome as to hours of work, total weekly income, and Steve’s total utility.
Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for possible future product and estimates that the reservation value is $ 25..
Suppose that a company has a fixed proportions production function that requires it to use two machines and one worker to produce 1000 units per hour. What is the average and marginal cost of unit production (again, measure output in thousands of uni..
The New Zealand dollar pushed toward U.S.55c yesterday as the greenback was dumped on a surprise U.S. Federal Reserve initiative to pump more money into a still-choked financial system.
A $10,000 mortgage bond that is due in 20 years pays interest of $250 every 6 months. The bond rate is closest to
Discuss several ways in which greater educational opportunities for young women could lead to faster economic growth in these nations.
Use this website to assess recent trends in direct foreign investment (DFI) abroad by U.S. arms. Compare the DFI in the United Kingdom with the DFI in France. Offer a possible reason for the large difference.
A man is planning to retire in 20 years. Money can be deposited at 6% interest compounded monthly, and it is also estimated that the future general inflation rate will be 4% compounded annually. What amount of end-of month deposit must be made each m..
Air transport for businesspeople and tourists
Illustrate what relationship must hold between x and p so that A second order stochastically dominates B.
The labor abundant countries of asia have experiences rapidly rising wages since those economies liberalized their international trade policies. Does this observation match the predictions of international trade theory? Explain.
The story of Coltan in the Congo is just one example of how an abundance of exploitable resources can often worsen or prolong military conflicts in nations that are too poor of ineffectively governed to protect these resources.
Suppose the mayor is suggesting an increase in gas taxes that would affect the commute costs and thus bid rent curves for residents Pr=5.5-0.75x. Calculate the new size of the city.
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