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You are determined to have at least one million dollars on the day you retire. How much will you need to save each year over the next 40 years of your career in order to meet this goal of$1,000,000 assuming you put you money into an account that averages 10% each year?
Our first look at bargaining: a simple version. A wealthy man has decided to allocate his fortune between his two children when he dies. For fun, he decides to include them in on the process. Can you identify any symmetric Nash equilibrium? If so, pr..
The yearly demand for coffee by U.S. consumers is given by the demand curve QD=250-10P, where Q is quantity.
What is the effect of the $400 increase in government spending and a $600 tax cut on the following indicators, ceteris paribus: (1) the change in output (GDP), (2) annual budget deficit, (3) in what context should the policy be used. Use a mpc of .75..
Assume that the following data describe the condition of the banking system: By how much could the banks increase their lending activity?
The problem is to choose x to maximize f(x;a) = ax- 3x^2, where á is exogenous, subject to the constraint. Calculate the first-order condition for this problem. For this problem, which values of x are on the boundary, and which are in the interior?
You are a management consultant for a 30-year old partner in a large law firm. In a meeting, your client says: “According to an article in the New York Times, 57 percent of large law firms have a mandatory retirement age for partners in the firm.
A study published by the Havard Business Review in January, 2000 found that intellectual property represents approximately__________ of an average firm's value.
Suppose an environmental regulation requires all polluters to reduce emissions by 50%, even though the cost of pollution control differs widely from one polluter to another. Why might this be inefficient, using the definition of efficiency developed ..
It is generally expected that an economic downturn will lead to an increase in inflation. Full employment output is defined as the output that can be achieved if everyone in the labor force has a job. According to the Keynesian model, injections will..
Suppose a consumer derives satisfaction from consuming tacos: those from Taco Bell and those from Chipoltle. Graph the budget line of the consumer under the assumption that he is offered a “buy three, get one free” deal at Taco Bell (limit one free t..
A country is described by the Solow growth model. It has a population growth rate of 5 percent and a rate of technological progress of 3 percent. It is currently at the steady state. What is the country is growth rate for output and output per worker..
Suppose that a proposal is under review to strengthen the NPDWS for benzene, and the associated abatement level would generate a marginal social benefit (MSB) that is greater than the marginal social cost (MSC) by $125,000. On efficiency grounds, sho..
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