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Suppose you own a house in Mobile, AL. Your house is currently worth $200,000. Suppose there is a 5% chance that a food destroys your house, in which case it will be worth $0. You have $50,000 in your bank account. a. What is the expected value of your house? b. You have a utility function over wealth (w) given by U(w) = p w. What is the least you would be willing to accept to sell your house? c. Why are the answers to the above two questions different?
Discuss the major causes of global warming, the expected effects providing an indication of which effects are likely to be the most important economically, and identify the greatest uncertainties surrounding global warming.
How do you calculate per capita income and capital per worker in the Solow Growth Model?
Why might leasing a new Porsche be good investment for an aspiring Hollywood film producer, even though, he can't easily afford the monthly payments.
Explain why would the increase in GDP be greater than the increase of a $100 increase in government spending.
This change undermines the marketplace for the replacement which is about twice the size of the marketplace for T3MP.
Consider a market with a demand curve of P=10-Q and a supply curve of P=Q. Before the imposition of a tax, equilibrium quantity is 5, and equilibrium price is $5 (verify this). If a tax of $5 per unit is placed on this market, quantity traded falls t..
Elucidate how do the GDP per capitals change after accounting for price indices.
q1. analyze the potential downfalls of any effort e.g. free riders and make at least one recommendation for minimizing
Industry-land was so named because it is highly industrialized. It is a world leader in production of manufactured goods. If industry-land put all its productive efforts into manufactured goods, it could produce 1,000 units per year. Draw a produc..
The following is a labor supply function: Wage per hour Quantity of Nurse Supplied $2 1 4 2 6 3 8 4 10 5 12 6 Nurses are used by the clinic to provide clinic visits.
What is "monopolistic" about monopolistic competition? What is "competitive" about a monopolistically competitive market? Please explain.
How did the enclosures law fuel the Industrial Revolution in Great Britain? Would you agree with Karl Marx in saying that the Industrial Revolution and its capitalistic foundations negatively affected the working classes?
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