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Consider a couple's decision about how many children to have. Assume that over a lifetime a couple has 200,000 hours of time to either work or raise children. The wage is $10 per hour. Raising a child takes 20,000 hours of time. a. Draw the budget constraint showing the trade-off between lifetime consumption and number of children.(Ignore the fact that children only come in whole numbers.) Show indifference curves and an optimum choice. b. Suppose the wage increases to $12 per hour. Show how the budget constraint shifts. Using income and substitution effects, discuss the impact of the change on number of children and lifetime consumption.
An individual wishes to deposit an amount of money now and $100 every six months so that at the end of five years $1,500 will have been accumulated. With interest at 4% per year, compounded semiannually, how much should be deposited now?
Illustrate what is the book value at the end of the third year.
Do these countries experience diminishing returns to physical capital per workee. And technology are held fixed in each country, can you recommend a policy to generate a doubling of real GDP per capita in Albernia. Amount of human capital per work..
Subsequently the customer paid the balance on 22 October 2012. To customer the Credit terms offered.
The U.S. Treasury bill is yielding 2.6% and the return on the market is 11.2%. The corporate tax rate is 30%. What is the firm's weighted average cost of capital?
The damage (to cigarette makers) is generally under control." Illustrate what action do you suppose the cigarette companies took to avoid bankruptcy.
The amount of money generated in a week can be viewed as a random variable with a mean of $700 and a standard deviation of $130. Find mean and standard deviation of an employee's total pay in a week.
Illustrate what is the probability the driving distance for one of these golfers is less than 290 yards. What is the probability the driving distance for one of these golfers is at least 300 yards.
The economic analysis of legal concepts, such as property law, contracts, torts, the legal process, crime, and punishment. The focus of much of the material is using the scientific theory of economics to predict the effect of various policies on ..
Assume that neither country experiences population growth nor technological progress as well as that 5 percent of capital depreciates each year
elucidate how many units of fish could it now consume along with the 80 units of imported wheat.
They face a straight market demand curve that runs from $500 on the price axis to 1000 on the quantity axis.How much profit will they make at that quantity? Why is this firm a natural monopolist?
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