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Consider the following facts. After the age of 25, persons with college degrees cam more than persons with no education beyond their high school degrees, ceteris paribus. Moreover, persons with high school degrees cam the same as persons who have had some college training-no matter the number of years of college-but never complete their degree, ceteris paribus. Which model of educational attainment better explains these facts (and why)?
To help you reach a $5,000 goal five years from now, your father offers to give you $500 now. You plan to get a part-time job and make five additional deposits, one at the end of each year. (The first deposit is made at the end of the first year). If..
Economists forecast future economic conditions by studying variables that tend to fluctuate in advance of the overall economy. The most significant of these variables are known as leading indicators, and they compose the index of leading economic ind..
Illustrate what is the marginal revenue from selling another book for the author. Explain how does it compare to the marginal revenue
Decide on the next steps based on the events that took place. What makes this next step the best decision?
A bus ticket between two cities cost $150 and the trip will take 25 hours, whereas an airplane ticket costs $450 and takes 5 hours. Kathy values her time at $12 per hour, and Rachel values her time at $18 per hour. Will Kathy take the bus or the plan..
After a month, the store clerk informs you that the same crate of wine now costs $82. However, there are 7 bottles in a crate. To the nearest cent, determine the average cost of the crate from last month to now.
Wong subscribes to the 6M plan and uses 150 hours a month. Suppose that Wong's demand curve is a straight line such that if the price of access were HK$20 per hour or higher, she would buy nothing. Draw her demand curve, and calculate her buyer surpl..
(Assume a two good world) Explain why it is that we allow for individuals to have different preferences, but make the claim that when acting rationally, all individuals will choose a consumption bundle where they have the same marginal rate of substi..
Quigley Inc. is considering two financial plans for the coming year. Management expects sales to be $301,770, operating costs to be $266,545, assets to be $200,000, and its tax rate to be 35%. Under Plan A it would use 25% debt and 75% common equity.
To derive the uncovered interest parity (UIP) condition we assume, among other things, that there is free movement of capital across countries. Is there a variant of the UIP that we can expect to hold (given the other assumptions) under such asymmetr..
You are the manager of Dunkin Donuts. Almost all of your donut sales are derived from the drive-through window. You know from experience that coffee is a complement for your donuts. The morning newspaper says that a major storm has just destroyed 50 ..
A particular economy has consumption of$400 million, a government deficit of $100 million, taxes of $250 million, and income of $800 million. Which of the following statements must be true?
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