Question: A car manufacturer is considering how many safety devices to install on a new car. The devices function independently and each one works with probability .9. Furthermore, they are connected "in parallel" so tha ...
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Question: Oil prices have risen temporarily, due to political uncertainty in the Middle East. An advisor to the Fed suggests, "Higher oil prices reduce aggregate demand. To offset this we must increase the money supply. ...
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Question - Lolita, an intelligent and charming Holstein cow, consumes only two goods, cow feed (made of ground corn and oats) and hay. Her preferences are represented by the utility function U(x, y) = x - x2/2+y, where x ...
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Question: a) Explain how an amplification mechanism may have been created from mortgage losses to the effect on the economy. What three factors may have contributed? Explain each. b) Explain the process of a financial cr ...
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Question: Suppose Ford Motor Company issues a five year bond with a face value of $5,000 that pays an annual coupon payment of $150. a. What is the interest rate Ford is paying on the borrowed funds? b. Suppose the marke ...
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Question: The English and the Vickrey auction are strategically equivalent, and the revenue for the seller is the same. Yet, in terms of the information received by the seller/auctioneer they are different. What is this ...
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Question - A collectivity consists of three persons, A, B, C. Demand for some collectively provided service, x, being for person A, P = 40/x; for person B, P = 20/x; and for person C, p = 10/x. The marginal cost is 10. ( ...
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Question: Pricing Many supermarkets sell both branded and private label goods. Suppose that a supermarket estimates that the demand for its private-label colas is less elastic than the demand for Coca-Cola. How should it ...
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Question: In the tradeoff between economic output and environmental protection, what do the combinations on the protection possibility curve represent? The response must be typed, single spaced, must be in times new roma ...
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Question: To what sorts of customers would an insurance company offer a policy with a high copay? What about a high premium with a lower copay? The response must be typed, single spaced, must be in times new roman font ( ...
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