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In the early 1980's, planners were examining alternate sites for a new London airport.The economic analysis included the value of structures that would need to be removed from various airport sites. At one potential site, the twelfth-century Norman church of St. Michaels, in the village of Stewkley, would have hadhad to the fire insurance policy on the church-a few thousand pounds sterling-as the church's value. An outraged antiquarian wrote to the London Times that an equally plausible computation would be to assume that the original cost of the church (estimated at 100 pounds sterling) be increased at the rate of 10% per year for 800 years. Based on his proposal, what would be the future worth of St. Michaels?
calculate the equilibrium number of visits, and total expenditures. b) Suppose that the consumer purchases an insurance policy that allows her to pay a 25% coinsurance rate. Calculate the new equilibrium number of visits and the total expenditures..
The Lexus LS 430, the top of the line Lexus sedan, riad a base price in Canada of C$85,700 during the fall of 2005. Restated in US dollars using the exchange rate prevailing then, that price is $71,885.
Illustrate what is the impact of these ratios on the level of new money that can be created given a $100,000 cash deposit into the banking system.
Illustrate what happens in the market for apartments when the government institutes a price ceiling that is lower than the market price. What could be some actions taken by renters and landlords when dealing with a price ceiling.
Problem on standard deviation
In the United States, the capital share of GDP is about 3 percent, the average growth in output is about 3 percent per year, the depreciation rate is about 4 percent per year, and the capital-output ratio is about 2.5. Suppose that the production ..
Utilize supply and demand analysis to explain why the equilibrium price of apples will rise and the equilibrium quantity will fall if an excise tax is levied on apples.
Draw an aggregate demand(AD)-aggregate supply (AS) complete framework that shows where the US economy in a full employment equilibrium& then where it is now.
Explain how has the relative composition of M1 changed since 1965? Do your best to explain why this change has occurred.
where si is the market shares of the i-th firm in the industry. The Herfindahl index for A is 100. The Herfindahl index for A is 3,800. The Herfindahl index for B is 3,600 The Herfindahl index for A is greater than for B. The Herfindahl index is ..
You and a friend are in an Italian restaurant and the owner offers both of you an 8- slice pizza under the following conditions: each one of you must simultaneously announce how many slices you would like to have (i.e., each player i is belong {1,..
How much is equilibrium level of income or output if Fed decides to set the rate of interest at 10 percent (r=0.10).
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