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George and Nancy had a $30,000 repair bill on their home after the tornado went through town. Their policy contained the usual 80% co-insurance clause. Their home's replacement value was $150,000; their policy coverage was $110,000 with a $250 deductible.
How much insurance should they have carried to meet the coinsurance obligation?
What percentage of this loss will the insurance company pay?
How much of the loss will George and Nancy have to absorb? (Show all work.)
Illustrate the effect of captial formation by comparing the production possibilty curves, at the present time and ten years in the future, for two economies.
What happens to the money supply, interest rates, investment spending and GDP. Describe the impact of rational self-interest on each.
The consumption of both x1 also x2. Label income also substitution effects for both goods. Illustrate what is the implication of product differentiation in defining market structure.
Make sure that you consider two cases. In the first case, the consumer does not pay any tax before x is reduced, and in the second case, the consumer pays a positive tax before x is reduced.
You sign a security agreement that describes the collateral. The bank does not file a financing statement. Has the banks security interest attached? If so, when?
Find out statistics on the web from 2004 to present on following indicators of the macroeconomic conditions of the U.S. economy.
If you were a manager at PepsiCo, would you try to convince your colleagues while introducing the new soft drink is the most profitable strategy.
Illustrate what would happens to P* if there is a decrease in demand followed by an increase in supply followed by another decrease in demand.
In country B the opportunity cost of 100 gallons of beer is 0.95 tons of cereal. Both countries can experience gains from trade if the exchange rate for a ton of cereal is 96 gallons of beer
Identify 3 types of competition that most firms encounter other than competition from other firms in their industry in their home nation.
Assume that the marketplace for sweaters is perfectly competitive. The future value of a deposit in a savings account will be larger
If Cameron is a risk neutral inventor, which option will be selected? d. How would your answer change if Cameron is a risk adverse investor?
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