Is it more economical to purchase or rent a home? Evaluate the economics of renting versus buying a $150,000 home and living in it for five years. If your personal interest rate is 12% per year (compounded monthly), is it more economical to rent or purchase this home? Provide Present Worth analysis (show your work) to validate your decision. Use the data below in your analysis. Rental Option:

Rent is $1,200 per month for the first year and increases $3 per month. There is also a $1,200 deposit payable when the lease is signed and is refunded at the end of year 5. Renter’s insurance is $35 per month.

Purchase Option: A$30,000 down payment is made, so $120,000 will be financed with a 30-year mortgage having a 6% annual interest rate compounded monthly. Additional closing costs of $2,000 are paid at the time of purchase. Property taxes and homeowners’ insurance total $200 per month, and maintenance is $50 per month. You sell the house with a profit of $43,000 prior to commission paid. The commission you paid to the realtor at the time of the sale is expected to be 7% of the selling price of $160,000.

Explain, using an example if you consider it appropriate, what you understand
by the equivalent terms ‘recursive equations’ and ‘triangular system’. Can a
triangular system be validly estimated using OLS? Explain your answer

1. The Carrier company, based in Jupiter, Florida has the option of manufacturing air conditioners in one or more of three locations: Indianapolis, Indiana; Windsor, Ontario; or Monterrey, Mexico. Suppose that Carrier’s production workers in the three locations are perfect substitutes in the production of a fixed output: they do essentially the same job of assembling air conditioners from parts. The level of prevailing wages in the three locations, in order, is $20, $15, and $10 per hour. The hourly productivity of the workers in the three locations, in order, is $30, $25 and $14.
   1. How should Carrier allocate its production across these three locations?
   2. How would your answer change if, instead of working independently, the workers in the three locations were imperfect substitutes in the production of a fixed output? Provide examples of how the workers could be imperfect substitutes across locations.

2. Describe the ‘bang-per-buck’ rule for firms
   1. with a linear production function
   2. when inputs are imperfect substitutes in the production of a fixed output

3. Define the Marginal Rate of Substitution (MRS) between two inputs. Describe how it changes as we move along an isoquant in the following three cases: imperfect substitutes, perfect substitutes, and antagonistic inputs.

4. Define option value as it relates to hiring a new worker.

37 Which of the following items would be expected to have the lowest price elasticity of demand?

High deductible health plans have increased over the past few years. How are these different than the traditional health plans? As a consumer, which plan would you prefer and why?

1) Suppose that Labor Supply is linear with exactly 0M people willing to work at a wage of $0 and 5M more people willing to work for each $1 increase in the wage. Labor Demand was such that the equilibrium wage rate was $20. Suppose that a negative shock hits labor demand so that the new ​[inverse] Labor Demand Curve has a vertical intercept at 110M and slope of -0.5. If downward wage rigidity prevents the wage from falling below $20, then how many people will be unemployed?

2) Consider the scenario in Question 1. Suppose that the shock to labor demand affected only the labor demand curve's intercept and not its slope. What must have been the pre-shock intercept for labor demand in order for $20 to be the equilibrium wage?

1.) The US is relatively capital abundant, and India is relatively labor abundant. Assume that the production of rice is more labor intensive than the production of cars. Suppose there are foreign direct investment (FDI) flows from the US to India,and the FDI is in the car industry. Answer the following questions.

a.Explain short-run and long-run effects of the FDI on India's pattern of production, imports and exports.

b.How will you answer in Part (a) change if the FDI from the US to India is in the rice industry? Explain your reasoning.

2.) Starting from the long-run equilibrium without trade in the monopolistic competition model with 10 firms in Home country. Consider what happens when Home begins trading with four other identical countries. Assume that all countries have the same population, and their consumers have identical preferences.

a.Compared with the no-trade equilibrium, how much does industry demand D increase? How much does the number of firms (or product varieties) increase? Explain your reasoning.

b.Does the new firm-level demand curve (d’) shift or pivot due to the opening of trade? Display a figure and explain your reasoning.Compare your answer with the case in which Home trades with only one other identical country.Which case has a more elastic new demand curve d’?

c.How will your answer in Part (a) change if one of the three countries is larger than the other two countries?

Define, describe, and discuss the regulation of employment

If someone asked you does the rate of profit tend to fall under capitalism, what would you answer? What is the evidence? Note it is not a simple question. During periods when it falls what is the Marxist explanation for the decline?

In the neoclassical money market, how can AS shift to the right without shifting AD? How could this be accomplished? Why would the outcome of growth with lower interest rates be desired?

Using Marx’s theory of competition do you think that the U.S. is competitive or is there a new stage of monopoly capitalism? Start by explaining Marx’s view and then review the empirical evidence.

Using examples from the course materials, describe the impacts, both negative and positive, of modern globalization on Southeast Asia. Explain how the experiences of the United States and Vietnam compare in terms of globalization. 500 Words.

Briefly describe the Discretionary AND Automatic Fiscal policies that you see taking place over the past month in the U.S. How are these policies meant to help the country? What effect will these policies have on the Federal Government Deficit for 2020?

Consider a model in which individuals live for two periods and have utility functions of the form ? = ??(?1) + .5??(?2). They earn income of $10,000 in the first period and save S to finance consumption in the second period. The interest rate, r, is 20.

a. Set up the individual’s lifetime utility maximization problem. Solve for the optimal C1, C2, and S. (Hint: ????1,?2 = −.5?2/?1 and the budget line is given by C2= (10,000-C1)(1+r) hence the slope of the budget line is -(1+r)). Sketch the optimal point in indifference curve and budget line diagram.

b. The government imposes a 9% tax on labor income. Solve for the new optimal levels of C1, C2, and S. Explain any differences between the new level of savings and the level in part (a), paying attention to any income and substitution effects.

c. Instead of the labor income tax, the government imposes a 9% tax on interest income. Solve for the new optimal levels of C1, C2, and S. (Hint: What is the new after-tax interest rate?) Explain any differences between the new level of savings and the level in part (a), paying attention to any income and substitution effects.