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The World Bank projects that the world's population will increase from 7 billion to 8 billion in 2025. World output today is roughly $80 trillion.
(A) What is global per capita income today?
(B) What will per capita income be in 2025 if the world's economy doesn’t grow?
(C) By what percentage must the world economy grow by 2025 to maintain current living standards?
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Your disposable income is $100,000 a year. You face a 50/50 chance of losing $10,000 from an illness requiring surgery and value your income to the utility function U=income^0.6. What is your expected income, what is your certainty equivalent, what i..
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