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May has just won a lottery, which offers a choice in how she may receive her prize. If the interest rate is 10% per annum, compounded annually, which of the following prizes has the highest present value? Assume May is 40 years old and expect to live until 85.
A company's marketing department has determined that if their product is sold at the price of p dollars per unit, they can sell q=1800−200p units. Each unit costs 7 dollars to make. What price, p, should the company charge to maximize their revenues?..
The best answers eliminate the puzzle concisely. Explain the short-run effects of eliminating rent control on apartments. In a competitive industry, with competitive supplies of labor and capital goods which have only normal gains, which factor obtai..
Countries A and B have two factors of production, capital and labor, with which they produce two goods, X and Y. Technology is the same in the two countries. X is capital- intensive; A is capital-abundant. Analyze the effects on the terms of trade an..
In the most recent economic downturn, what types of polices were actually implemented (fiscal, monastery, or both?) to stimulate the economy? Provide examples of the policies and tell if it was a success, and why?
Explain how you would calculate the price elasticity of demand of gasoline? In general terms, explain how consumer and producer surplus will change as a result of this price increase?
Assess the importance of policy analysis during the development and implementation stages of public policy. Discuss the social impact of policies. Discuss the limitations policies have on government power.
Under the responsibility scheme proposed by the Hong Kong government, households will be charged for solid waste disposal. Is this charge justifiable from an economics point of view? Explain your answer with a diagram. Is it fair to charge all househ..
Define and explain the difference between normal goods and inferior goods. Provide two real world examples of each good from your own personal or professional life.
Consider the following model for the economy c=100+0.75(y-taxes) and I= 200, G= 50 and taxes+10+.16y. export=15 and imports= 5+.05y. what is the equilibrium level of GDP? Suppose the level of investment is reduced by 50. What is the equilibrium level..
What institutional arrangements are necessary to promote a sound, stable banking system?
In the last few years, Nigeria, the African continent's largest economy, has been plagued with growing insecurity problems following numerous acts of violence perpetrated by the insurgent group Boko Haram. Nigeria has low capital mobility; The Nigeri..
Under the cost minimization rule, when will a firm employ only human labor? Why does the cost minimization rule suggest that it is unlikely a firm actually would replace human labor entirely with robotic inputs?
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