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A county is considering using a piece of park land for one of two alternative recreation projects. Project A would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years. (Assume the benefits are realized at the ends of years 1 through 10). Project B would require construction costs of $4 million and generate net benefits of $1 million per year for 20 years. (Assume the benefits are realized at the ends of years 1 through 20). If these figures are in real dollars, and the real discount rate is 7 percent, which project would the county select?
Assume x and y are the only two goods a person consumes. If after a rise in p x , the quantity demanded of y decreases, one could say
Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units of o..
The marginal external expenses associated with air pollution increases with the yearly output of a polluting industry.
Suppose you earn $1 million over your working life and the real interest rate for retirement saving is 50%. How much will you save and how much will you consume in each part of your life?
Production Possibilities Tables for Germany and Canada (note that we are assuming that opportunity costs remain constant along the production possibilities frontier), and that each country produces only these two products).
Illustrtae what position should the fund manager take to hedge exposure to the market over the next two months.
Problems are an inherent component of our every day life. since we must do something about them, there are a couple of approaches to problem solving. Identify these approaches.
Elucidate what are the effects of monetary policies on the economy's production and employment.
There are six equally productive individuals on the island. Each person can gather 25 coconuts in one day or build one hut in a day.
Assume there are only two automobile companies, Ford and Chevrolet. Ford believes that Chevrolet will match any value it sets, but Chevrolet too is interested in maximizing profit.
a. Calculate the equilibrium level of income or real GDP for this economy. b. What happens to equilibrium Y if I(g) changes to 10? What does this outcome reveal about the size of the multiplier?
Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience.
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