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Your utility function is U(m) = ln(m), where m is income. You are considering buying flood insurance. You have income, m, of $50,000. A flood would cost you $30,000. The probability of a flood is 1%.
What is the maximum amount you would be willing to pay for an insurance policy that will pay you for 100% of your damage in the event of a flood?
Assume that you are 10 years into a 30 year home loan at 6.0%. You owe $150,000 left on your home at this time. You can refinance your loan at 3.5% for 20 years; however the closing costs will be around $4,500.
supply and demand is one of the most fundamental concepts of economics and it is the backbone of a market
If the farmer can buy insurance for a premium of $0.05 per dollar of coverage, how large of an insurance policy should the farmer buy?
Calculate the equilibrium level of income and indicate it in a graph
Which of the following are characteristics of both depository banks and shadow banks? Check all that apply.
Assume the market for natural gas can be explained by, Where P is the price of natural gas per million BTU, Q(D) is the quantity demanded and Q(S) is the quantity supplied of million BTUs of natural gas a day.
analyze the effect of the political economy on trade agreements and policy. analyze the various countries to which the
A country is described by the Solow Model with a production function y = k1/2 where y is output per worker and k is capital per worker. Now suppose that the fraction of output invested (or saved) is 50%.
for your next consulting assignment you are employed by the european trade commission to examine the consequences of an
The world is shrinking rapidly with the advent of faster communication, transportation, and financial flows. the terms global industry and global firm are becoming more common. Explain how cultural differences
exchange economy 1. suppose that in a simple two-good exchange economy the two individuals a and b have the following
which will cause a larger short run increase in prices an anticipated or unanticipated increase in aggregate demand?
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