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Q. 1. Describe the Arrow-Pratt measures of risk-aversion, both absolute (r) and relative.
2. Describe the characteristics of optimal contracts in principal-agent problems when the agent (manager) is risk neutral.
Q. In a well-developed five to eight sentence paragraph, discuss the difference between GDP and GNP. Your essay should include a definition of both, specific examples of what could affect each, and a discussion of why it is more accurate to examine both when trying to determine a country's economic success.
Calculate the tax incidence of the buyers and the monopolist.
PL is the price of unskilled labor in dollars (the wage rate = $6), PC is the price of capital as a percentage, I is family ncome also PS is the price of California oranges.
if people never withdraw cash from banks, what how much money could the banking system potentially create.
Illustrate want the government to impose a price ceiling on pump gas.
Every Saturday morning he requires his sales staff to send him a report. This report Comprises, among other thing, the number of professors visited during the earlier week.
what is the expected economic life for this water pump and what is the minimum annual equivalent cost.
Compute the equilibrium interest rate by setting the overall demand for money equal to the overall supply of money.
A local restaurateur whose trade had been profitable for many years recently purchased a liquor license, giving her a legal right to sell beer.
Illustrate what does your anticipated adjustment process imply about the CR for the industry. Industry B has 20 Industries also a Concentration Ratio (CR) of 80%.
Assuming that this is rational behaviour by profit-maximizing "firms" elucidate what economic factors may influence such behaviour.
If David's only illness this year results in an appendectomy, explain how many days will he choose to stay in the hospital
Depreciation in the value of the Japanese currency in relation to the US dollar does not allow the Japanese firms to sell more in the USA marketplace.
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