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Under China's family planning laws (commonly referred to as its one-child policy), those who follow the policy are offered rewards, loans, and other forms of social assistance, depending on socioeconomic status. People who do not comply with the policy are subject to penalties such as fines and confiscation of personal property. Excess children may also be subject to educational and health sanctions. What behaviour is the Chinese government attempting to promote with these types of incentives? Identify which aspects of the law are negative incentives and which are positive incentives.
A firm uses two inputs in production: capital and labor. In the short run, the firm cannot adjust the amount of capital it is using, but it can adjust the size of its workforce. What happens to the firm's average total cost curve,
At its current short-run level of production, a firm's average variable costs equal $20, and its average fixed costs equal $70. Its total costs at its current production level equal $200,000. a. What is the firm's current output level
suppose that the professor imposes a price floor of $15 per book. Sellers are pleased because they think that they will be able to get more money this way. How to calculate how much cash would the sellers receive from selling their books now
Verify that the number shown in the table is correct to a single decimal place. b. The level of the CPI in March 2007 was 205.10. Calculate the CPI for March 2008
oprah just inherited a house with a market value of 150,000 and she does not expect the market value to change. Each year, will pay 300 for utilities and 2000 in taxes. She can earn 4 percent on money in a bank account. Her cost of living in the h..
A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant at $1,000 per diamond, and the demand for diamonds is described
A $40,000 investment you made yields annual payments of $22,000, $14,000, $17,000, $25,000, and $38,000 at the end of the next 5 years respectively. Calculate the rate of return represented by this cash flow to three significant figures.
Bundling is not always superior to offering (and pricing) items separately. Consider a telecommunications firm that offers both phone service and high-speed internet. It has two consumers (named Talker and Surfer) who differ in the willingness to ..
Suppose a depositor comes to the bank and withdraws $200 in cash. Show the banks new balance sheet assuming the bank obtains the cash by drawing down its reserves. Does the bank now hold excess reserves
Suppose that the market for cigarettes in a particular town has the following supply and demand curves: Qs = P; Qd = 50 P with quantities measured in thousands of units. Suppose the town council needs to raise 300 000$ in revenue
a mortgage banking company has been evaluating the merits of a 50-year mortgage. The basic idea is to reduce the monthly payment and make home ownership more affordable. the APR of either mortgage is 6% and the compounding is monthly.
What is the minimum sample size required?
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