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Assume that your grandfather has left you $100,000 to be paid to you on your 35th birthday. However, you need money now to continue your education. Assume that you have just completed your 20th birthday. Until your 35th birthday, your grandfather’s trust fund will be managed by the Neopolitan Bank, one of the most trustworthy in the world. After conversation with a bank official, you learn that they might be willing to “buy” your future inheritance, giving you a sum of money now that will be repaid with your grantfather’s bequest, once it becomes available. If you know that the interest rate is 7%, roughly how much should you be able to get if you sell your future inheritance to the Neopolitan Bank (or any other bank) right now? Explain your work and why your answer makes intuitive sense.
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
Illustrate what can we conclude about the income elasticity of demand?is it positive or negative. what class of goods candy bar belongs to.
Assume that equilibrium real GDP is 800 billion, potential gdp is 900 billion, the mpc is .80, and the mpi is .40 . What is the size of the GDP gap.
Considers the choices of Native Americans who decide to stay on their tribe native land or reservation also those who select to relocate to a city.
Illustrate what does it imply about actual price level relative to expected price level. Illustrate what must happen to real and nominal wages in order to close a contractionary gap.
Finds in a simple regression analysis which demand increases with an increase in advertising also falls as advertising expenditures are reduced.
How does this change in tax policy affect the price that buyers pay sellers for this good, the amount buyers are out of pocket including the tax, the amount seller receive net of the tax, and the quantity of the good sold?
A purely competitive wheat farmer can sell any wheat he grows for $30 every bushel. His five acres of land
Explain how the indifference curve and budget line apparatus are used to derive a consumer's demand curve.
Illustrate what is the probability that a simple random sample of auto insurance policies will have a sample mean within $25 of the population mean for each of the following sample sizes: 30, 50, 100, and 400.
Assumes that wheat producers lobby the government for a price floor also receive one.
Graph all three curves. What is the relationship between the marginal-cost curve and the average total cost curve
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