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Important information about Utility function
Consider a risk averse agent. He faces a health risk of D(he/she has to go to the hospital and pay D, and he/she will be fine) with probability k. He/she can buy insurance at price q (that is he/she can buy at cost q a contract that pays 1 dollar if he/she has to go to the hospital). How many units of the contract will the agent buy if the price is q=k?
Political business cycle: Do economic events affect presidential elections? To test this so-called political business cycle theory, Gary Smith 20 obtained the following regression results based on the U.S Presidential elections for the four yearl..
After two years the City of Plentiful is faced with a fiscal crisis and decides that it wants its garbage back.
In the country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate?
Each of the following headlines describes an event that will have an effect on desired aggregate expenditure
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?
Calculate the cross-price elasticity for the following goods. Are they complements or substitutes?
Provide a report to management of the firm as to whether or not it should continue to operate at a loss?
A farm operator has asked you to help him/her determine the quantity of water that should be applied to a crop under irrigation.
Describe the point elasticity of demand with respect to advertisement
As the author listed as the 1st profit of creation of approx 1000 private sector jobs. Describe the logic of this statement.
Lisa is a lawyer and there are two tasks that she hates to do, even though her job requires it. Draw a graph with hours reading on the horizontal axis and hours writing on the vertical.
Suppose that in the market for comic book illustrators the substitution effect dominates the income effect While visiting Comic Con.
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