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Joe owes Willy $5,000 from an old gambling debt. Joe knows that there is no way he can repay the debt in the near future. He asks Joe if he will take a $25,000 life insurance policy that has a cash surrender value of $4,200 and release him from the debt. Willy agrees to take the insurance policy and cancels Joe’s debt. Willy makes only one premium payment on the insurance policy of $50 when Joe is killed in an auto accident. Willy collects the $25,000. Explain all the tax consequences of these events for both Joe and Willy.
l. How can you tell that this is not the long-run least cost of producing this level of output m. How would the firm adjust its labor and capital usage to produce this level of output at least cost in the long-run
Assume a friend tells you that her Economics instructor made two seemingly contradictory statements to the class. The statements were 1.
Keynesian thinking dominated US (and other developed-country) policy-making well into the 1970s, although the "classical" counter-arguments kept up a steady criticism:
Joe's t-shirt shop is located in a small college town. the majority of business is custom t shirts for university book stores. as a sideline, they also sell t-shirts locally. the local demand is Q=200-5P. calculate output, price, and profit under ..
As across many types of technologies that could be useful. However, I am unable to pinpoint one specific technology.
Suppose that two years ago, you purchased a Jeep Wrangler SE 4WD with a soft top for $16,500 using five year interest-free financing.
Explain the difference between the population coefficient, i.e. ß(hat) and sample coefficient, i.e. ß. Also, please explain the difference between the OLS predicted Y (predicted dependent variable) and E(Y|X)
Assume that it is impossible to discover which individuals belong to which group. Will members of group 2 insure against this loss in a competitive insurance market.
Assume that the price elasticity of demand for good. Describe how much consumption changes.
Consider the following Solow model of growth. Both population and work force grow at the rate of n=1% per year in a closed economy.
The table above has the market demand schedule in an industry that has two firms in it. The marginal cost of this product is zero because these two firms have exclusive ownership of the resource and it does not cost any additional amount to produc..
Is it not ethical to use employee as a puppet to make money with out their consent? What are your thoughts on Adam Smith's principle of the Invisible Hand?
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