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1) Suppose Mayor Strange comes to you and asks you whether or not Montgomery, AL should bid for 2024 Olympics. He says that a group of economic consultants has said it will be a major boon for Montgomery’s economy. What kind of things did they likely claim in their report to the Mayor? What factors did they likely neglect to mention? Is it likely or unlikely that Montgomery would see a major impact? Why or why not?
2) After accepting your recommendation not to pursue the 2024 Olympics (hint, hint), Mayor Strange comes to you with another idea. The Jacksonville Jaguars are considering moving to Montgomery. They have said they will do so if the taxpayers of Montgomery will pay for a large, brand new stadium (in addition to the renovated Cramton Bowl, and the new ASU stadium). Why might Montgomery benefit, and how would we measure that? What sorts of negative consequences might come from the Jags’ relocating to Montgomery (aside from abysmal football)?Why would the benefits to the city likely be overstated? Why are teams like the Jags constantly interested in new stadiums anyway (Hint: think about their revenue function).
How does domestic price ratio change. How will country's production pattern change. How will its consumption and trade pattern change. How is welfare affected. Is re a difference to import tariff.
Julie spends all of her $60,000 salary on vacationing and remodeling projects. Her typical vacation costs $2,000 and the remodeling projects cost $4,000 each. What two conditions must be met for Julie to be maximizing her utility? solve the condition..
Write down an expression π(q ) for profits as a function of q. Find profit-maximizing choice of q for Smith and corresponding price and profit.
Illustrate what is the real GDP in each year, given that the price index has risen from 100 in the base year to 104.5 in Year 1 and up to 108.3 in Year 2.
The Charm City Bakery makes coffee cakes and Danish pastries in large pans. The main ingredients are flour and sugar. There are 25 pounds of flour and 16 pounds of sugar available. Formulate a linear programming model for this problem. Find the optim..
How much Medicare Tax did she pay? What is her marginal tax rateon her federal personal income tax? Details are related to the U.S.
The Occupational Safety and Health Administration (OSHA) has determined that the probability of a worker dying from exposure to a hazardous chemical used in the production of fertilizer is 0.008. The cost of imposing a regulation that would ban the c..
You purchase a new house for $200,000 with a 5% down payment. You obtain a 30-year loan at 5% compounded monthly and will make monthly payments on the loan. Closing costs are $1,500. PMI is $150 per month for the first 5 years. Taxes are estimated to..
Suppose that the wage is $20 per hour in a two-sector (manufacturing and agriculture) specific-factors model. Currently, the prices of manufactured and agricultural outputs are $5 and $1, respectively;
The current account balance may fall after a real depreciation because
Compute accounting profit. What are the opportunity costs for the manager of being in this business relative to returning to his old job. Illustrate what is the economic profit of the business.
What is globalization (please define it both as a process and outcome)? What factors can you identify in explaining why globalization occurred? How do you assess its impact upon both rich countries and poor ones, in particular, the issue of inequalit..
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