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Stacey and Betsy are contestants on a game show. They each select a wrapped box from four choices. They know that one box contains $100 and the other three boxes contain $1000, $10000, $100000. They each unwrap their box and look inside. They then have a choice of whether or nor to trade with one another, Stacey uses all the information in the game correctly. Betsy’s husband has advised her to trade if her box has less than $100000 inside. Betsy’s box has $1000 inside. She offers to trade with Stacey. Stacey agrees to trade. Did Betsy’s husband give her good advice? Explain.
Illustrate how the outcome would differ if all 15.3 percent were imposed on the employee or if all 15.3 percent were imposed on the employer."
With regard to global warming policy, describe, in a short paragraph, the importance of: Discounted costs and benefits. Public goods. We also discussed similarities between solutions, or potential solutions, to overfishing and global warming. describ..
In August 2008, Mexican Pesos ere trading at $0.10 on the foreign exchange market. By November, they were down to $0.07, a decline of 30%. Explain the fall in the price of a Peso using supply and demand curves. In words, explain the rise in the price..
If you invest a certain amount of money today, you can profit $250,000 exactly 5 years from now. The investment pays an annual market interest rate of 10% based on the expected annual inflation rate of 4%. Assuming the real rate stays the same, how m..
Consider a firms per-period (e.g., hourly) production process. If it employs 1 unit of labor, then 8 units of output will be produced; if it employs 2 units of labor, then 12 units of output will be produced; and if it employs 3 units of labor, then ..
Discuss what organizational form (e.g., private ?rm, government corporation, or normal government production) you think might be appropriate for each of the following. In each case, discuss problems of designing appropriate incentives and efective re..
Assume that VCRs continue to be sold at $200 per unit while average income increases from $30 thousand to $50 thousand. Assume also that the price for DVD players remains steady at $500. Using the midpoint method, what is the income elasticity of dem..
The principle of opportunity cost is that
Illustrate what is the probability that this worker is a college graduate. A non-college graduate. Are educational achievement and employment states independent
Government expenditure and investment has remained fairly constant as a fraction of GDP since 1950, even as transfers have risen. Most of state government revenue comes from the income tax, and most state and local government income comes from the sa..
All else being equal, what would be the predicted consequences of the change in the real exchange rate from 1997 to 2005 for china's net exports and official foreign exchanges reserves?
Discuss the difference between them and explain the managerial actions that can influence the firm profitability.
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