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Consider a forest with 100,000 tons of standing timber and a growth rate of 5,000 tons of biomass per year. At a price of $100 per ton, what is the value of the forest if it is clear-cut versus the value of a sustainable management policy in which the annual harvest is no more than the annual growth?
a.) Using a 3% discount rate, which is economically preferable? (Hint: the formula for the PV of a future stream of benefits into perpetuity is PV = Annual Payment / Discount Rate)
b.) Which is economically preferable using a 6% discount rate?
In a speech in late 2011, President Obama argued that: "Probably the single greatest cause of the financial crisis and this brutal recession has been the housing bubble that burst four years ago". What did President Obama mean by the "housing bub..
Explain why the Aggregate Supply curve becomes increasingly steeply sloped at levels of RGDP near "full employment" and becomes especially steeply sloped beyond "full employment" RGDP (hint: this topic is not discussed in your text. you will need ..
Elucidate explain why after such unprecedented economic growth, technical advance economies still experience economic cycles and stagnation.
Illustrate what is the difference among nominal and real quantities and why make the distinction.
In colonial times, the concept of consideration was exported to many common law countries, but it is unknown in Scotland and in civil law jurisdictions?
A firm located in a small town in East Coast relocates to West Coast. Workers in that town cannot sell their homes to move with the firm. The resulting unemployment is called:
Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market?
What is aggregated supply and aggregate demand mean?
Identify absolute and comparative advantage of U.S. and Japan - Suppose that these two countries engage in free trade. Identify absolute and comparative advantage. Describe the pattern of trade.
Why might a firm charged with violating the Clayton Act, Section 7, try arguing that the products sold by the merged firms are in seperate markets. Why might a firm charged with violating Section 2 of the Sherman Act try convincing the court that ..
Labor hours required to produce one unit of cloth in the united kingdom is 6. The labor hours required to produce one unit of cloth in the united states is 5. Which country has an absolute advantage of producint wheat? In producing cloth?
What is the price elasticity of demand for good A? Is the demand for this good elastic or inelastic and what is the price elasticity of demand for good B? Is the demand for this good elastic or inelastic?
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