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The ‘baby-boomer' is the largest and fastest-growing market segment in all Western economies and for the next two or three decades will be a major purchaser of services. Which of the following is not associated with this cohort?
(a) They are often called GLAMS or The Graying Leisured Affluent Majority.
(b) The over-50s possess over 80% of the UK's wealth.
(c) They mainly take a prudent approach, saving for a rainy day deferred gratification.
(d) In the US some are classified as SKINS - Spend the Kids' Inheritance ... Now.
A furniture manufacturer is considering moving its production to India. Its production function is: Q = 1.52L.6K.4. In Canada, w = $24 & r = $4. In India, w = $4 & r = $24. a. What is the K/L ratio in Canada If Q = 100, what is L & K in Canada What..
Suppose economists observe that an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion. (a) If these economists ignore the possibility of crowding out
Explain the central limit theorem in the context of the current problem, and indicate whether it was needed to find these probabilities in a, b, and c (might differ for each of a, b, and c).
In the financial market model, we are modeling in what form people want to hold their fi- nancial wealth - the value of financial assets minus financial liabilities. Note that wealth is not the same thing as savings or income.
think of one situation in which the Government is actively involved with the purpose of changing an outcome in the appropriate market. Do you agree that the Government should be involved? Why or why not?
Consider the baseline AK model in Section 19.4. Suppose that production and allocation decisions within each country are made by a country-specific social planner (who maximizes the utility of the representative household within the country).
A bulldozer can be purchased for $380,000 and used for 6 years, when its salvage value is 15% of the first cost. Alternatively, it can be leased for $60,000 a year. Remember that lease payments occur at the start of the year.
Part of the policy response to the crisis was an extension of the length of time that an unemployed worker could receive unemployment benefits. How would you predict this change would affect the proportion of those unemployed more than six months?
A friend was left $50,000 by his uncle. He has decided to put it into a saving account for the next year or so. He finds there are varying interest rates at savings institution: 4.375 % compounded annually, 4.25% compounded quarterly, and 4.125% co..
Notice that the marginal external benefit is constant at $4 per book, so the gap between the marginal private benefit curve and the marginal social benefit curve is $4.
Consider a two person, two commodity pure exchange economy, with:U q q,U q q q q qand q q q Derive the contract curve as an implicit function of q and q. What condition on the coefficients and ß will ensure that t..
Consider two firms that act as Cournot competitors and face the inverse demand function p(.), where p'(Y1 + Y2) 0 i = 1,2.
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