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Behavioral economics . The rational economic person is in possession of full information about potential policy changes and their consequences for his/her choices, so that gradual implementation of changes or stability of tax policy is not important. How does what we know about actual people and their limitations alter the importance of stability and gradual change?
What are the principal services provided by your local government? How much of the benefits accrue to strictly local residents, and how much to visitors and others? Who should pay for those services?
A restaurant borrows $35,000 It will pay back over 5 year period with the following payment terms: 15%, 20%, 25%, 30%, 35% of the initial loan at the end of the first period, and so forth. a) What rate of interest is the bank earning from this loan..
This was a period of rapid industrialization as well as migration into urban areas. What factors do you think might account for this fall in height and how would it affect your evaluation of economic welfare during the period?
In what ways does our trade model require further extension?
Give the equation of the curve relating E(y) to x1 for noncoached students. Identify the y-intercept, shift parameter, and rate of curvature in the equation.
An engineer starts to make quarterly deposits of $1,500 (at the end of a quarter) into an investment account at age of 45. If he wants to have $250,000 when he retires at age of 65, what must be the nominal and effective interest rates per year
Walt Disney World Theme Parks offer tourists a wide variety of ticket options. The one thing these ticket options have in common is that they entail a fixed entrance fees and permit consumers to take as several rides as they wish at no additional cha..
Solow Growth Model. Suppose that the U.S. economy can be described by the Solow Growth Model and that it was at its steady state in 2008. In 2009, President Obama proposed a huge, sustained increase in government spending
The Coma Chemical Company needs a large insulated stainless steel tank for the expansion of its plant.coma has located one at a Brewery that has just been closed.The brewery offers to sell the tank for $15000 including delivery. the Price is so lo..
1.Project K costs $60,000, its expected cash inflows are $13,000 per year for 7 years, and its WACC is 9%. What is the project's NPV 2.Project K costs $51,955.53, its expected cash inflows are $12,000 per year for 8 years, and its WACC is 11%. Wha..
A man wishes to set aside some money for his daughter's college education. His goal is to have a bank savings account containing an amount equivalent to $20,000 in today's dollars at the girl's 18th birthday. The estimated inflation rate is 8%.
Delete these two observations and construct a 95% confidence interval for the mean increase, using the remaining 26 observations. Do the outliers have much of an effect on the confidence interval?
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