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A Presidential candidate announces that he will propose that participation in the Social Security program become voluntary. That is, you can decide if you want to pay into the system when you work. If you decide not to pay in, you receive no benefits when you retire. Would there be an adverse selection problem if Social Security participation were voluntary? That is, who would stay in the program? Who would want to not participate?
Tara bought a corporate bond with a face value of $20,000 at a discounted price of $18,000. The bond pays a dividend every year payable quarterly. What is the quarterly dividend Tara should get if she hopes to get a 12% return on her investments? Ass..
Consider the following facts. After the age of 25, persons with college degrees earn more than persons with no education beyond their high school degrees, ceteris paribus. Moreover, persons with high school degrees earn the same as persons who have h..
An important factor in selling a residential property is the number of people who look through the home. A sample of 17 homes recently sold in the Buffalo, New York, area revealed the mean number looking through each home was 26 and the standard devi..
Max has the utility function U(x, y) = x(y + 1). The price of x is $2 and the price of y is $1. Max’s Income is $11. How much x does Max demand? How much y? If his income doubles and prices stay unchanged, will Max’s demand for both goods double?
How much are you willing to invest today to receive $150 a year for seven years and an additional $1,200 at the end of the seventh year? Assume this investment is low risk, that is, no riskier than putting money in a bank earning 2%.
If you were in a discussion about The Federal Reserve System about the tools they use to pursue montery policy and what tool they use the most how would you comment or reply to the follow the statement is it right, wrong the correct use by FED and so..
Suppose that the external damage is MD = 300 + 5Q; MC = 100 + 2Q; MB = D – 2Q where D is unknown. (a) If D = 1000, what would be the optimal quantity? What tax would be necessary on order for that to be the optimal quantity?
According to Coontz, what is most distinctive about the current period in history in the western world compared to most others in terms of the role of marriage in society?
Let us discuss America's imperialist episode in 1898 when, almost point-blank it took four colonies. Was this an aberration or the beginning of a new trend? Can you think about our current times and find any similarities or parallels?
A firm is said to have excess capacity when:
You are evaluating two different silicon wafer milling machines. The Techron I costs $222,000, has a three-year life, and has pretax operating costs of $57,000 per year. For both milling machines, use straight-line depreciation to zero over the proje..
In explaining the 2003 bill to cut taxes, President Bush is quoted as saying, “When people have more money, they can spend it on goods and services.” In the IS–LM model, will a tax cut change the money supply in the economy? Explain.
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