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During World War II there was a freeze on wages, and corporations found they could evade the freeze by providing other fringe benefits such as retirement funds and health insurance for their employees. The Office of Price Administration, which administered the wage freeze, ruled that the offer of retirement funds and health literature was not a violation of the freeze. The Internal Revenue Service went along with this and ruled that employer-financed retirement and health insurance plans were not taxable income. Was the wage freeze an example of a price floor or a price ceiling? Use the model of demand and supply to explain why employers began to offer such benefits to their employees.
If the government were to make university attendance mandatory and subsidize tuition costs with tax dollars, how might this affect a nation's economic growth?
Describe the demand and marginal revenue curves faced by a firm in a purely competitive market. Are they different from those faced by a firm in oligopolistic competition?
The length of a Colorado brook trout is normally distributed. Illustrate what is the probability that a brook trout's length exceeds the mean.
According to the in the News article, "News Rules Would Cut Thousands of Coal Jobs",
You win the lottery and are promised by the Lottery Commission $12,000 a year for 6 years, starting next year. Assume the interest rate is 9%. What is the present value of this prize?
Consider the following utility function, which specifies Carina’s preferences over two goods, donuts (D) and brownies (B). (Please note that we call this type of utility function quasi-linear.) U(D, B) = 3D + 2Bˆ 2 (a) (10) Plot an indifference curve..
The firm is going to borrow the money for its capital purchases. The interest paid on the debt can be added to accounting costs. Suppose it turns out that the present value of this expense is .10 for every dollar of capital purchased. What is the ..
Standing for "free soil" and "free labor," the Republican Party was able to appeal to northern farmers and native-born workers, but at the price of alienating many northern manufacturers. Is this True or False?
List the four principles of effective intervention in criminal justice in sequential order. What do principles mean and do they work? If so why or why not.
Explain why Consumer Preferences may influence the own price elasticity of demand for a commodity.
Which of the following statements is TRUE? A risk-averse person prefers gamble B to gamble A. A risk-averse person prefers gamble A to gamble B. A risk-neutral person prefers gamble A to gamble B. A risk-neutral person prefers gamble B to gamble A.
Assume that the spot price of Swiss Franc is U.S. $1.05 with a volatility of 7% per annum. The risk-free rates in Switzerland and the U.S. are 3% and 7% per annum. Assume that the U.S. is the home market. Determine the value of a European call option..
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