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Explain the paradox of why new cars usually lose a large fraction of their market value the moment they are driven from the showroom.
If you drop a 20-pound bowling ball on your foot,it will tickle. You drop a 20-pound a 20-pound bowling ball on your foot. What reaction would you expect?
Consider the case of industrial water or air pollution in which pollution is proportional to output and aggregate externality. What is the difference between the private and social market supply curve
Suppose the price is raised by $1 above the level just calculated due to price-fixing by sellers. Calculate the resulting deadweight loss and depict it in a diagram.
Why might bad cars drive good cars out of the used-car market? Give at least two possible solutions to resolve this paradox.
what is the maximum annual membership fee you would be willing to pay to join Amazon Instant Video? Draw a graph.
What is the expected value of your bike in the scenario described above? Are you risk loving, risk neutral or risk averse in each scenario described above? Why?
Suppose now that a Big Mac costs 1.25 pounds in London while the spot rate exchange rate is $2.50. Is the pound overvalued or undervalued? Explain. Is the Big Mac a good basis for PPP calculations?
Determine the optimal quantity of public goods that the government should provide, and interpret your results. Make sure you show all of the relevant cases. What happens when b changes, or when q ch
Determine the effects of this tax change on the consumer, and explain your results in terms of income and substitution effects.
Discuss the exchange rate regime adopted by the Monetary Authority of Singapore. Explain how the MAS has successfully used exchange rate policy to achieve price stability for the last two decades.
People who had looked for work were hired, 50 people became discouraged workers, and 40 new graduates looked for work. Calculate the unemployment rate for July 2011. Show all your work.
Employer paid him $1,000 specifically to cover the cost of the move, but doesn't specify what it can be used for. Calculate James' maximum moving expense deduction.
Net taxes are $2.8 trillion, and household saving is $2.2 trillion, what is the quantity of funds demanded at an interest rate of 7 percent?
Using graphical analysis, describe the effects of the following events on their respective markets. Concisely describe in words the reason for the adjustment.
What other ways are movies distributed? What are the different price points? Using this information, draw a fully labeled graph of the market for movies in which the distributor of the film price di
Dutifully send in the $5 per ticket. draw a well labeled graph showing the impact of the tax. on whom does the tax burden fall-the team's, owners, the fans, or both?why?
Now suppose the factory develops an innovation that allows it to produce a shirt for the equivalent of 1 loaf of bread. What is the new radius of the factory's market area.
How would you use these cost and revenue estimates to determine whether a sales force increase (or possibly a decrease) is warranted?
Their production function is Y = 2. Both countries start off with K = 100. What is the amount of consumption in each country this year?
P=320-.04Q with quantity, Q, measured in thousands of barrels per day and price, P, measured in dollars per barrel. The supply curve is given by PS=5+.015Q. Compute the equilibrium quantity and pric
Assuming that the returns of these stocks are independent of each other, find the mean and standard deveiation of the total amount that this investor earns in one year from these four investments.
Tuition fees and books will cost $12 000 per year. Living expenses will cost $10 000 per year. What is the opportunity cost of Andrea's four year university degree?
The less formidable U.S. Sherman tank was produced by American car manufacturers. Use the product-process matrix to explain that mistake and its likely result.
If the exchange rate at the end of the year was $0.90, does the yen appear to be overvalued, undervalued, or at the PPP level? Explain your answer.