How much can available information tell about discount rates

Assignment Help Microeconomics

Reference no: EM131923441

Problem

Suppose Jane has 3 years of college, Pam has 2 years of college, and Mary has 1 year of college. Jane earns $21 per hour, Pam earns $19 per hour, and Mary earns $16 per hour. We know their abilities are the same, and the difference in educational attainment is completely due to different discount rates. How much can the available information tell us about Jane's, Pam's, and Mary's discount rates?

Reference no: EM131923441

Questions Cloud

Company form 10-k and an annual report : Discuss the similarities and differences between a company's Form 10-K and an annual report created especially to send to the stockholders.

When will the output of an economy be at the natural rate : When will the output of an economy be at the natural rate? Is the natural rate of output the full employment level of output (i) in the short run.

Does ur constitute practicing medicine : Does UR constitute "practicing medicine" and if so should UR be limited to only those medical professionals licensed to practice medicine Utilization Review.

What will be the book value of the jets : Ten years ago, your company purchased a few corporate jets for $2,000,000. For tax purposes they will be fully depreciated over 20 years using the straight-line

How much can available information tell about discount rates : Suppose Jane has 3 years of college, Pam has 2 years of college. How much can the available information tell us about Jane's, Pam's, and Mary's discount rates?

Write a business email to thomas zorn : You are the purchasing manager for Outfitters, a new store scheduled to open February 1, 2017, in Madison, Wisconsin.

What is the fee to make the client indifferent : What is the fee (percentage of the investment in your fund, deducted at the end of the year) that you can charge to make the client indifferent between.

Is the situation more one of prospective dating : Although people certainly create the situations they perceive, what they perceive is also influenced by what they do.

What happens to the signaling value of a persons education : Discuss what happens to the signaling value of a person's education. Can there be a perfectly separating equilibrium in this labor market?

User Account

All Pages