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If a person with utility from income is U = ln Y (where Y is income) and an initial income of $50,000 faces the risk of losing all of her income except a dollar with a likelihood of one percent, what is the most you could charge such a person for full insurance against this risk? And what would actuarially fair insurance cost her?
Use the endogenous growth model to determine the effects of this on the paths of aggregate consumption and aggregate output overtime.
Elucidate what happen in the short run to market supply and demand curves, market price, the firm's output, the firm's profit.
In year 1 the price level is constant and the nominal rate of interest is 6 percent. But in year 2 the inflation rate is 3 percent. If the real rate of interest is to remain at the same level in year 2 as it was in year 1, then in year 2 the nominal ..
Illustrate what are the advantages and the risks of linking the scorecard to compensation.
Assuming International political economy viewed through realism’s lens is all about power, what types of power and why? What are the real-world outcomes of such a realist point of view? How will a country “behave” toward others, for example?
What would be the effect of a $5000 increase in the competitors' advertisement expenditure and outlet demand curve c) What would joy's advertising expenditure have to be to counteract this effect?
Suppose, initially, the interst rate parity condition holds. Then at some point, U.S. interest rates are 4 percent more than rates in the EU. a) Would you expect the dollar to appreciate or depreciate against the euro, and by how much? b) If, contrar..
Total profit is maximized at output of ? What is profit maximizing price? What will profits be at profit max output and price?
Estimate the regression coefficients using ordinary least squares also interpret them. Predict the weekly sales for a store with 10 feet of shelf space situated at the back of the aisle.
q1. suppose china produces both agricultural and capital goods. draw and show the change in the ppf when an outbreak of
Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average cost, and (3) LIFO.
What are the key points in a short-run production function that delineate the three stages of production? Explain the relationship between the law of diminishing returns and the three stages of production.
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