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Consider the dual market model based on Ghatak and Jiang (2002) with the following modification: The entrepreneurial technology requires one entrepreneur and two workers. Suppose that w= 15, r= 0.1, I= 150, q=135, π= 0.1, F= 100. Suppose that 40% of the population have asset holdings a= 400 and the remaining 60% of the population a =250.
a) Calculate the threshold wage w that leaves a credit constrained individual indifferent between becoming a worker and self-employed
How might healthcare reform increase productivity in the United States? c. How might healthcare reform decrease productivity in the United States?
During the 2012 presidential election campaign, Texas Governor Rick Perry criticized the actions of the Fed Chair Ben Bernanke. He Argued that, "Printing more money to play politics at the particular time in American history is almost treasonous in m..
Use the concept of a production possibilities curve to illustrate the choice between consumption of lifetime earnings during the period when the income was earned (horizontal axis) and consumption during retirement years (vertical axis).
In the late 1990s, as information technology advanced rapidly and the Internet was widely developed, U.S. stock markets soared, peaking in early 2001.
What are the four roles that states can play in negotiated global environmental regimes? What determines what role a state might play? Why do states sometimes shift roles?
Drilling, Inc., is considering installation of a new automated drilling equipment. The new equipment can be installed for $12,850,000 today and will have a life of 4 years until technological obsolescence due to rapid advances in drilling control tec..
1. Controlling the money supply is a key macroeconomic policy tool. Explain how the Fed controls the money supply and what separates the balance sheet of the Fed from that of ordinary commercial banks.
Explain the role of magical realism in "A Very Old Man With Enormous Wings" and explain how it can be described as magical realism.
Calculate the total fixed costs, average total costs, and marginal cost functions (you can just use a table for the first 6 values), as well as marginal revenue
Carefully explain the effect of an increase in income tax rate on the equilibrium GDP in the Keynesian income-expenditure model.
According to 2009 data on the U.S. population which of the following was correct? Adults had higher labor-force participation rates and higher rates of unemployment compared to teenagers. Adults had higher labor-force participation rates and lower ra..
Why should a profit maximizing manager who is setting prices care about elasticity demand curve for a product. Elasticity only accounts for how price changes revenue.
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