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Junior likes driving fast. When he goes to work he drives 70 mph on a road whose 50 mph. By doing this, he lessens his trip to and from work by 20 minutes. If over speeding by 10 mph results in the probability of dying in one hour to be 1 in 400,000, use the Jones-Lee approach to estimate Junior’s value for his life if he makes $90 per hour. What if the probability of dying is 1 in 5,000,000?
Illustrate what would be the size of the resulting deadweight loss relative to the competitive outcome.
Illustrate what must the central bank do to keep the peso cost of the dollar equal to Peso 3.4425 subsequent the speculators activities.
Distinguish between the crowding-out effect also the Ricardo Barro effect. Elucidate how are the 2 effects related
what happened to the overall price level. Explain how might you construct a measure of the change in the price level.
Explain how are poor infrastructure, lack of financial institutions and a sound money supply, low saving rate poor capital base.
Illustrate what would happen to the profits CPI makes via their toothpaste division.
Suppose that C (q) = 10q + 3,500,000 (for which MC (q) = 10 ). Use Inverse Elasticity Pricing Rule in order to determine profit maximizing price and level of output for this firm. Is this firm able to earn a positive profit.
Open a pizza restaurant and is considering either selling the bonds and using the 100,000 to start his restaurant or borrowing the 100,000 from a bank which would charge him an annual interest rate of 7 percent.
Provide reasons to explain what government would have to do to keep the unemployment rate at 3 percent."
explain why an increase in the wage rate for autoworkers will generate more of a negative employment response in the long run than in the short run
critically discuss the pros and cons of this contractual arrangement vis-a-vis the alternative of outsourcing the teaching to an outside fi rm.
illustrate what proportion of the population would score higher than Bob.
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