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Two executives were arrested by authorities for embezzling money for their firm. Short of confusion the only had enough evidence to put them away for 10 Years. Give confusion; however she was certain to put them behind bers for life without parols, since they killed a law enforcement officer who was investigating the case. The prosecutor put the two prisoners in separate rooms, and told them the following: 'If you confess and your partner does not, I'll give you a year\'s probated sentence but put your partner in the slammer for life without parole. Of course, if your partner confesses and you don't you'll get the life sentence without parole and he'll get one year probation. I must warn you, however that if you both confess I'll
Have enough evidence to put you both away fi=or life without parole.
1. Do you think the Prosecutor's bargain will induce the two executives to confess? Explain.
2. Would you answer change if the life sentence carried the possibility of parole? Explain.
Bright Future, Ltd (BF) is a non-profit foundation providing medical treatment to emotionally distressed children. Determine the optimal amount of service provided by BF.
Describe unemployment and the unemployment rate. Might we be able to say "Job Stats: Too Good to be True?"
You are the manager of Taurus Technologies, and your sole competitor is Spyder Technologies. The two firm's products are viewed as identical by most consumers.
Suppose Shaqueena is currently earning income of $23,000 (I =23) and can earn that income next year with certainty.
Assuming individuals hold no cash (all cash is in bank vaults as reserves), calculate the simple money supply from the following reserves requirements and deposits in the systems. 5 Points each, 30 points subtotal
Compute the monopoly equilibrium. Compute the consumer surplus. Assume this firm practices two-parts tariffs, Compute the optimal output.
Suppose two identical firms produce widgets and they are the only firms in the market. Find the Cournot-Nash equilibrium.
Calculate total factor productivity growth (our measure of technological progress) for each country using the growth accounting framework discussed in class.
What is autarky price and quantity equilibrium for both home and foreign? What is the open trade price and volume under free trade.
Assume that Congress is considering imposing the 30% tariff on imported automobiles. Who would be the gainers and who would be the losers from such move?
Explain how each of the following would cause the yield curve to shift if between now and next year:
A tariff I ssimply a tax on imports. Use our model of the excise tax (with diagram) to expain why domistic firms request that tariff? Consider both the domestic and the foreign country in your answer
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