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You need to hire some new employees to staff your start-up venture. You know that potential employees are distributed throughout the population as follows, but you can't distinguish among them:
Employee value Probablity
$50,000 .25
$60,000 .25
$70,000 .25
$80,000 .25
What is the expected value of five employees you hire?
Discuss the advantages and disadvantages of using GDP as a macroeconomic indicator. Identity and explain the rationales behind alternative measures of the wellbeing of the society.
Describe the magnitude of crowding-out that results from the above fiscal expansion .Show the transition dynamics that results.
Market failure is a situation in which a given market does not efficiently organize production or allocate goods and services to consumers. Overcoming market failure is a significant challenge for the government, which is not easy to accomplish and m..
Why substitution effect does not apply to AD the way it is in the demand for a single product? Does Income effect apply to AD as it is in the demand for a single product? What do we consider when we explain the inverse relationship between price leve..
A smaller network carrier (hub and spoke airline) is considering expanding its product by adding a new route connecting its hub with the “fortress hub” of a global network carrier (see Doganis sections 9.6 & 9.7). Use penetration pricing.
In Atlanta, the price elasticity of demand for bus rides is -0.5, the income elasticity of demand for bus rides is -0.1 and the cross price elasticity of demand for bus rides with respect to gasoline is 0.2. Describe the relationship between bus ride..
Two investors have each deposited $100 million in a bank. The bank has invested these deposits in a long-term project. If the bank is forced to liquidate the investment before the project matures, a total of $160 million can be recovered. How many pr..
A firm has a production function (products of the whole year) given by q = 500 LK . Wage is $40,000 per year and capital rental rate is $90,000 per year. Find the best way to produce 6000 products in a year. What is the total cost to produce? b. Fin..
Consider a world in which there is no currency also depository institutions matter only transactions deposits also desire to hold no excess reserves.
Design a new human sensation and/or perception that is likely to contribute to improved awareness or survival. Let's see if everyone can come up with their own unique idea. Let's also take precognition (seeing the future) and any form of telepathy or..
If the quantity of steel workers demanded falls from 30,000 to 20,000 when the equilibrium wage increases from $9.00 per hour to $11.00 per hour, then the own-wage elasticity of demand for these workers is/
Food For Life makes health foods for active, outdoor people. Their three basic products are whey powder, a high protein strength bar, and a meal additive that has the taste and consistency of sawdust. Research shows that consumers fall into two types..
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