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If individuals are risk averse, why do they care more about large losses-that is, why are they willing to pay a larger amount in excess of the actuarial value of the losses for insurance? What does this imply for the design of social insurance?
Collect data on the tuition rates of your own college in the last twenty years and compare that increase to the overall rate of inflation using the CPI. What do you observe? Can you suggest some productivityenhancing measures?
Name the three major components of a Web database application.
Suppose that the signal is no longer available. Which kinds of job will be filled by which types of workers, and at what wages? Who gains and who loses?
For the first time in two years, Big G (the cereal division of General Mills) raised cereal prices by 2 percent. If, as a result of this price increase, the volume of all cereal sold by Big G dropped by 3 percent, what can you infer about the own ..
explanation for why convergence across regions and states might be slow. [Hint: should we expect technology or capital to flow more rapidly across regions?]
Figure 3.10 illustrates the derivation of an industry supply curve under competitive conditions where each firm receives the same price for its output. What is the relationship of this procedure to the equimarginal principle discussed earlier in t..
Did these values increase or decrease during 2008? Explain how the changes in the exchange rates may have had an impact on the changes in U.S. exports, imports and the trade balance.
On a diagram, draw the marginal cost curves for the two factories, the average and marginal revenue curves, and the total marginal cost curve (i.e., the marginal cost of producing Q = Q1 + Q2). Indicate the profit-maximizing output for each factor..
Do the same for x2. After, solve the consumer's optimization problem using the Lagrange multiplier method. Interpret the first-order conditions in terms of the slope of budget constraint and indifference curves.
Suppose that the Fed's inflation target is 2%, potential output growth is 3.5%, and velocity is a function of how much the interest rate differs from 5%: %^V= 0.5 X (i-5). Suppose that a model of the economy suggests that the real interest rate.
Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q)=150+28Q-5Q(squared) and C(Q)=100+8Q. (Note:MB(Q)=28-10Q and MC(Q)=8.) a. write out the equation for net benefits.
A monopolist is selling fish. But if the fish don't sell, they rot. What will be the likely elasticity at the point on the demand curve at which the monopolist sets the price? (Difficult)
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