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1. Bike owners on campus sometimes buy locks to reduce the chance of theft. Suppose that the probability of theft without a lock is .25, and the probability with a lock is .05. If the value of the bike is $200, and the cost of the lock is $25, is it worthwhile to buy the lock?
2. Now, suppose the college police increase their patrols, thereby lowering the probability of theft to .10 with no lock, and 0 with a lock. However, students are assessed an extra $10 each to cover the cost. Is it now efficient to buy the lock?
Question: Quantitatively, how important is international trade to the United States relative to the importance of trade to other nations? What country is the United States' most important trading partner, quantitatively? With what country does the..
Helen’s preferences over CDs (C) and sandwiches (S) are given by U(S, C) = SC + 10(S + C), with MUC = S + 10 and MUS = C + 10. If the price of a CD is $9 and the price of a sandwich is $3, and Helen can spend a combined total of $30 each day on these..
Candice can make 5 units of food per day if she devotes all of her time to food production. She can make 10 units of clothing if she spends the whole day at clothing production. Now suppose a trading ship visits the island each day and offers to buy ..
Would the worker be better or if, instead of the health insurance, she was given a £100 per week pay increase which would be taxed at 20%.
Briefly summarize the impact of an oil import tax by explaining who is helped and who is hurt among the following groups: domestic oil consumers, domestic oil producers, foreign oil producers, and the US government.
If the price of housing (which accounts for roughly 40% of total expenditures in the CPI basket) rises by 15% in one year while the prices of all other goods rises by 25%, by how much will the CPI rise by given this information? If substantially more..
On the Keynesian cross diagram, a decrease in government spending (as in tight (contractionary) fiscal policy) will cause
Sierra borrows $175,000 from Regional Home Finance Corporation to buy a home. The loan is a twenty-year, 3/1, adjustable-rate mortgage, with an initial interest rate of 4.0 percent for three years and potential increases of up to 3.0 percent to a cap..
If an insurance plan decides to launch a cost sharing plan to insured who previously had no out-of-pocket expenses, what changes in demand for services
Assume the United States economy is in a deep recession explain how does this recession affect the US major trading partners such as China, Canada and Japan.
Explain the implication for a country’s exchange rate in the monetary approach and in the portfolio balance approach of (a) an autonomous decline in the demand for money at each interest rate by the country’s citizens, and (b) a change in expectation..
Suppose that, for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Now consider one such ditch-digging firm that has five backhoes but employs..
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