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Q1. What is the rationale behind the mini-max regret rule? Illustrate several less formal and precise methods of dealing with uncertainty? Explain when they are useful?
Q2. Why are so many of the large industrialized nations like U.K., France, U.S., Japan which running continuing large federal deficits and what must be done to avoid default?
Q3. What do you imagine about the interest on payday loans is too high or just right? Christians be supposed to charge poor people interest on loans?
Q4. (a) Illustrate when the NPV and the IRR methods of evaluating investment projects provide contradictory results? (b) Also explain how can this arise? (c) Which method should then be used? Why?
Specify the set of mutually beneficial allocations relative to the initial endowment and illustrate the set.
The third largest city of a country has a population of 12.5 million.
Now? suppose? that? the ?first ?firm? has? a ?capacity ?of ?2 ?and? the? second? firm? has ?a ?capacity ?of ?4.
In the context of share holder maximization model of a firm, what is the expected impact of each of the event on the value of the firm?
Distinguish between the resources market and the product market in the circular flow model.
Austria has a history of strong hostility to nuclear power, and over the last twenty years the Austrians have shut down all of the reactors in Austria
Suppose that only data on in action were published but not on claims for unemployment. What would be a reaction of the USD/EUR in that case.
How many DVD's will she have to sell to keep the store open for an extra hour to make profit, if each DVD is $12.
Suppose that in the 1990's, the average retail price of a roll of Kodak film was $6.95 and that Kodak's marginal cost was $3.475 per roll. Based on this information, discuss industry concentration.
What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitute's one product for another. Use examples to illustrate.
Democratic Republic of the Congo grows at a healthy 3% per capita, how long will it take Democratic Republic of the Congo to catch up with Luxembourg.
Find Equilibrium GDP (Y). If potential GDP is 1950, is the economy in a recessionary or inflationary gap. Suppose that the MPC, falls to 0.75, so C = 0.85DI. Find Equilibrium GDP.
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