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Suppose that you have a job paying $40,000 per year. With a 15% probability, next year your wage will be reduced to $10,000 for the year.
a. What is your expected income next year?
b. Suppose that you could insure yourself against the risk of reduced consumption next year. What would the actuarially fair insurance premium be?
Determine the profit maximizing output and amount of profits for the firm. If the market demand increases to Q(d) = 57 - 4P, determine the new profit maximizing output and profits.
Discuss at least three items that are common pitfalls when setting up a budget. Discuss how you will plan for opportunities to attend conferences or workshops that are important to your marketability but the expenses are not covered by your employer
Margaret and her friend, Julia, walked out of the car dealership and climbed back into their car. "Well, what do you think?" Julia asked. Margaret shook her head. "I didn't understand what Mel (the salesman) was talking about ... especially about the..
Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers. Praxilla gets 30 units of marginal utility from her first poem 27 units of marginal utility from her second poem, 24 units of marginal utility from h..
What was the amount of the equal annual end-of-year payments for each of ?rst 3 years? b. What was the amount of the equal annual end-of-year for each of the last 3 years?
Draw labor supply and demand curves for cashiers in supermarkets. Show the effect of a rise in the minimum wage to above the current wage rate. do you anticipate large employment gains or losses?
List a few major challenges YOU THINK would impact the future economic well being of the United States. Explain why these are crucial challenges and how they can be overcome. Your response MUST make references to short term fluctuations as well as lo..
What are the advantages and disadvantages of fixed versus floating exchange rates?
"The role members of Congress serve in acting on behalf of the interests of the home constituents and nation regardless of whether constituents would immediately approve of the members' decisions" If you were a legislator and had to decide whether to..
Which of the following statements is generally True about information products?
What trade-offs does the Federal Reserve consider when deciding how rapidly or how slowly to increase the U.S. money supply? What are the dangers of increasing the money supply too slowly? Too rapidly? What factors make it difficult to predict the gr..
Clarke's workers are highly skilled artisans with a great deal of job mobility. What impact would the wage increase have upon the firm's employment.
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