1. Suppose the government imposed a maximum wage in the market for some high-paying job. Draw a diagram to illustrate this market. What would be the consequences of this maximum wage? 2. Explain why, when we analyze the minimum wage, the elasticity of labor supply affects the unemployment rate but not the employment rate. […]
1-Suppose the marginal social cost of fighter aircraft each year exceeds their marginal social benefit Are fighter aircraft being produced at an efficient level? 2-The marginal social benefit of college enrollments currently exceeds its marginal social cost . Use a graph to demonstrate the gain in efficiency that would result from an increase in college […]
1. Suppose the government grants $2,500 per child to households that have more than two children. Do these child allowances influence the fertility behavior of households that had no children prior to the government program? 2. A worker plans to retire at the age of 65 when he will start collecting his retirement benefits. There […]
1. Suppose that you enter into a six-month forward contract on a non-dividend-paying stock when the stock price is $30 and the risk-free interest rate (with continuous compounding) is 12% per annum. What is the forward price? 2. A stock index currently stands at 350. The risk-free interest rate is 8% per annum (with continuous […]
1. Suppose that we disallowed recursion in Ada. Would it be possible to construct a fully static environment for the language? Is the same true for C? 2. Describe how, in a language without procedure parameters, the environment pointer of a procedure closure does not need to be stored with the procedure, but can be […]
1. Suppose that the skills acquired in school depreciate over time, perhaps because technological change makes the things we learned in school obsolete. What happens to a worker's optimal amount of schooling if the rate of depreciation increases? 2. Suppose that workers differ in their ability, but have the same rate of discount. Is it […]
(1) Suppose that the treasurer of IBM has an extra cash reserve of $100,000,000 to invest for six months. The six-month interest rate is 8 percent per annum in the United States and 6 percent per annum in Germany. Currently, the spot exchange rate is €1.01 per dollar and the six-month forward exchange rate is […]
1. Suppose that the indifference curves between consumption and leisure are concave to the origin. How many hours will a person allocate to leisure activities? 2. Suppose that the price of goods purchased in the marketplace rises. What is the impact of this price increase on the worker's reservation wage, on the worker's probability of […]
1. Suppose that the election of a popular candidate suddenly increases people’s confidence in the future. Use the model of aggregate demand and aggregate supply to analyse the effects on the economy. “Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
1. Suppose that a stock is expected to pay a $1 dividend at the end of this year and that your required return on equity investments is 9%. Using a one-period model of stock price determination, if you expect to sell a stock you buy today a year later for $17.0?, you will be willing […]
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