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There are 2.4 billion people in “severe” poverty with less than $2 of income per day. (a) What is the maximum combined income of this “severely” poor population? (b) What percentage of the world’s total income (roughly $75 trillion) does this represent?
Fig. 17-2 in Froeb & McCann shows a decision tree for deciding whether to enter a new market. Because the expected value of entering ($1) was greater than the expected value of not entering ($0), the decision was to enter. Why might the decision make..
A descriptive essay on “is there a "free-rider" problem associated with public goods and services? How does government address this free-rider problem? What are the necessary ingredients for a nation to experience greater rates of economic growth, hi..
The exchange rate between the dollar and the euro is one dollar to .8 euro (€). The price of a Mercedes is € 45,000; the price of a similar size Cadillac is $38,000. What is the euro price of the Caddy? What is the dollar price of the Mercedes?
If you deposit $600 in a savings account that earns a nominal annual interest rate of 8%, how many years will it take to have at least $2,000? The effective interest rate on a mortgage with monthly payments is 4.6%. What is the monthly interest rate ..
a. What is the after-tax present worth of the car? b. What is the Equivalent Annual Cost (EAC) of the car in its first year?
Lay out the arguments forand against trade treaties like NAFTA, and/or for the process of"globalization" of the U.S. economy. What do you think? What is your position, positive or negative, and why do you think so? Paterson, which now has lost most o..
He is going to travel the world this summer and won't be working. How much must be set aside in his savings account for the 3-month summer to cover his rent for next year? The savings account earns 3% with monthly compounding.
Be sure to include an analysis of the stages of production and describe why of the three stages, only one stage is rational for the firm.
Consider the economic situation of Tatum, a single mother with one daughter, Blaire. Tatum is free to work as many hours as she would like at $10/hr. Additionally, should she qualify, Tatum may also collect welfare benets. What is Tatum's income if s..
Suppose that people expect the Fed to hit its inflation target. A: Calculate the optimal money growth rate needed for the Fed to hit its inflation target in the long run.
Suppose that a tax of $28 is levied on each item sold by a monopolist, and as a result, it decides to raise its price by exactly $28. Why might this decision be against its own best interest?
Describe five everyday examples of you or someone else making an interpersonal utility comparison. How is buying a house in a good school district like sending children to a private school? Of two similar houses on a street, one faces the ocean and t..
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