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Suppose you win a lottery, and your after-tax gain is $40,000 per year until you retire. As a result, you decide to work part time at 32 hours per week in your old job instead of the usual 40 hours per week.
a) Calculate the annual income effect on hours worked from this lottery gain based on a 50-week year.
b) What is the substitution effect on hours worked associated with this lottery win? Explain
After that Dewey's opportunity cost of producing one bushel of corn is 1/2 yard of cloth.
How can makers of flat-panel TVs earn economic profits during the first few months after the introduction of new models? What economic forces result in the dissipation of economic profits earned by manufacturers of flat-panel TVs?
After looking at some reports, you come to the conclusion that when price is 2, quantity is 1, and when price is 6 quantity is 9. Using the midpoint formula, what is the elasticity of this curve over the range provided. a. 5/8 b. 5/4 c. 8/5 d. 2 ..
Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation unemployment cycle suggest about how the macroeconomic history of the 1980s might have been changed.
Consider a market for online movie rentals. The market supply curve slopes upward, the market demand curve slopes downward, and the equilibrium rental price equals $3.50. Consider each of the following events, and discuss the effects they will have o..
Illustrate what is the net current value of a project that requires a $100 investment today and returns $50 at the end of the first year and $80 at the end of the second year? Assume a discount rate of 10%.
Does disposable income measure the before-tax income received by resource suppliers
q.paul owns a home on the top of a hill and enjoys an unobstructed view of a large wooded area. the view was a large
What are the advantages and disadvantages to a two-stage approach to negotians? Why do most negotiations for globl environmental regimes end up taking a two-stage approach?
illustrate what feature of the value function explains the phenomenon, and how.
Using accelerated depreciation rather than straight line would normally have no effect on a project's total projected cash flows but it would affect the timing of the cash flows and thus the NPV.
q.consider a mutual fund with 720 million in assets at the start of the year and with 10 million shares outstanding.
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