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maria lives 2 periods. in period 1, she is a student, her income is 0 and she does not pay axes. in period 2, she will have a BA. her income after tax will be $55000. the interest rate is 10%, her utility is given by U(c, c')=log(c)+log(c'). It can be shown that the optimal consumption allocation is c=05we, c'=0.5(1+r)we
1. determine Maria's lifetime wealth.
2. Determine comsumption and savings of Maria in period 1 and in period 2.'
3. Maria decides to switch a major and is now a student in business. in period 2, she will have a BA in business and her income will be $88000. determine Maria's lifetime wealth. determine consumption and sacving of maria in period 1 and period 2.
Calculate the amount of tax collections that the government will require in period two. If so, compute it; if not, explain why not.
Assume the frequent flyer program has raised the cost of high-yield spill two fold since trade clients who are denied boarding now take their trade
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Explain how "history" affects ability of firms in this game to achieve an outcome superior to that of one-shot version of game.
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Write down an expression describing total income from tickets plus popcorn plus other concessions. Forecast total incomes for regular also special Tuesday-night pricing.
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