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Assume that that students and nonstudents have revealed their group demands for junior college education, a public good, as follows: Q = 1,500 – 0.25P, (Student demand) Q = 4,000 – P, (Nonstudent demand) where Q is the number of students educated per year and P is the price of tuition at the local 2–year junior college.
1. Calculate the aggregated demand for college education.
2. Assuming, MC = 1,000 + Q, the marginal cost of college education, determine the socially optimal amount of publicly-supported college education (hint: Demand = Supply).
What is the term premium for a 6-period bond if the interest rate on the 6-period bond today is 10 percent and 1-period interest rates are expected to rise by 2% each year from their current level of 4%?
In addition, the business agrees to pay the inventor a royalty equal to five percent of its sales revenue from these products over the next ten years.
How could such a policy create challenges for trading partner relationships? What are the trade war possibilities? What would you propose if you were in Congress
Describe the historical and institutional developments of the major US economic security programs since the early 20th century and identify the major attempts to reform the system throughout the period.
You are a novelist who has been published several times. None of your books have been a great commercial success, but you have established a fine reputation as a writer, and you make a decent living. Your agent works for a well-known agency which rep..
For each of the following, describe some of the potential opportunity costs:
Suppose that, the economy initially at full-employment, the cantral bank increases the money supply. b. How are output and unemployment connected?
The demand for company X's product is given by Qx = 12 - 3Px + 4Py. Suppose good X sells for $3.00 per unit and good Y sells for $1.50 per unit. a. Calculate the cross-price elasticity of demand between goods X and Y at the given prices. b. Are goods..
If Y is a continuous, uniformly distributed random variable over the interval (4,10), then the value of the PDF between 4 and 10 is: (
You are a financial planner attempting to evaluate your investment strategy to recommend to clients. Based on your economic background, you believe the Fed is going to loosen monetary policy.
For your term paper you are required to select a Fortune 500 company and analyze the following factors: Firm History and financial performance, Supply and demand conditions impacting firm revenues, Production costs, Demand and price elasticity.
Suppose autonomous consumption is $500, government spending $1,000, panned investment is $1,250, and net exports are -$250 and the MPC is 0.8. What is the equilibrium value GDP?
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