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Maria lives 2 periods. In period 1, she is a student in Philosophy. Her income is 0 and she does not pay taxes. In period 2, she will have a BA in Philosophy. Her income after tax will be $55,000. The interest rate is 10% (0.10). Her utility is given by
It can be shown that the optimal consumption allocation is:
a. Determine Maria's lifetime wealth.
b. Determine consumption and savings of Maria in period 1 and in period 2.
c. Maria decides to switch a major and is now a student in Business. In period 2, she will have a BA in Business and her income will be $88,000. Determine Maria's life time wealth. Determine consumption and savings of Maria in period 1 and in period 2.
1. airway express has an evening flight from los angles to new york with an average of 80 passengers and a return
Separate the bond market into municipal bonds and corporate bonds, if the President lowers the federal income tax rate by 5% and holding everything else constant.
draw an aggregate production function with typical shape and label it f. make sure to label the axis of the graph. now
1. complete the following
lg electronics plans to invest 30 trillion won by 2010 to make this happen hoping that the cost savings and reduction
a mechanical engineer who is anticipating paying for his daughters college education plans to start depositing money
An article in Business Week warned of the dangers of deflation as the collapse of numerous Asian economies was creating worries that Asia might try to “ export its way out of trouble”.
How do you go about weighing the alternatives? Once you choose a most important use of time, why do you not spend all your time on it? Use the notion of opportunity cost in your answer.
1. a firm uses two variable inputs labor l and raw materials m with typically shaped isoquants. it pays 20 per hour for
Briefly explain the Microsoft case, focusing on precisely how Microsoft was alleged to have violated the Sherman Act? What was the outcome of the case and why was that decision made?
Minimum wage laws are controversial for many reasons. One is that they may not be beneficial to the workers that they are most intended to help.
Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange. Explain how these problems are inte..
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