list the raw materials used for soccer boots
In: Economics
What are those four most important factors determine supply of loanable funds? What are those four important factors determine the changes in the supply of loanable funds?
In: Economics
You decide to create a college fund for your 5-year-old child, with an interest rate of 6% compounded quarterly. Deposits will be made every month until the child is 18. First withdrawal will be at age 20. College expenses are estimated to be $30,000/year in today’s dollars for 4 years, starting at age 20. The inflation rate is 5%/year. Find the amount of monthly deposits in actual dollars.
In: Economics
In: Economics
Suppose there are only two TV stations in Arecima, each broadcasting programming over the airwaves. Each station wishes to get the maximum number of viewers and each is considering whether to carry a reality-tv show or a comedy show in its 11pm slot on Saturdays. The 1000 Arecima residents have the following preferences: 800 of them wish to watch a reality-tv show and have no interest in a comedy show whereas 200 people would enjoy watching a comedy on TV but would go sleep if both stations chose to broadcast a reality tv show. Each station will receive half the audience if both broadcast the same type of show. Write down the `outcome matrix' of this game and find the Nash equilibrium. Is the equilibrium efficient? As usual, justify your answers.
In: Economics
One version of the rational action model of decision making is expected utility theory. Examine the major tenets of this theory. How are payoffs and probability handled by proponents of this theory? Explain?
In: Economics
Assume you have several years of student-level longitudinal data on math test scores, demographic characteristics, and what school each student enrolls in each year.
a. What would be the problem with simply comparing the math test scores of students attending a traditional public school with the outcomes of students who attend a charter school, even controlling for student demographic characteristics? Would this comparison yield the causal effect of attending a charter school on math test scores?
b. Some charter schools are oversubscribed, and by law they are required to admit people by lottery. How would you use the lottery data to overcome selection problems? Would this method tell you how an average charter school affects math test scores?
In: Economics
In the credit market model with limited commitment, suppose that a consumer's collateral constraint is binding, and suppose that the consumer's current taxes fall, with an increase in future taxes that leaves lifetime wealth unchanged for the consumer. How does this affect the consumer's behavior? Explain.
In: Economics
1)Briefly explain what school accountability policies are and provide the economic arguments that support these policies.
2) Describe the No Child Left Behind Act. What was its original intent, how does it mandate that states assess adequate progress, and what are the sanctions that schools face if they do not meet these goals?
In: Economics
(b) What are the advantages and disadvantages from an overall economic perspective of using monetary financing to fund budget deficits as opposed to governments borrowing from markets in the usual way? Fully explain 5 advantages and 5 disadvantages
In: Economics
Explain a trend and the main reason for boards of directors and shareholders becoming more active in the operations of publicly held corporations
In: Economics
Suppose an agent has preferences represented by the utility function:
U(x1, x2) =1/5 ln (x1) + 4/5 ln (x2)
The price of x1 is 6 and the price of x2 is 12, and income is 100.
a) What is the consumer’s optimal consumption bundle?
b) Suppose the price of x2 is now 4, what is the consumer’s new best feasible bundle?
In: Economics
1. Based on the following set of equations,
(1) AD=Y=Y*
(2) AD = C + G0 + I
(3) C = C0 + c1* YDIS
(4) YDIS = Y-T
(5) T=T0 + tY
(6) I = I0 –er
0 <c1<1
0 <t<1
e>0
a) Derive AD curve
b) Draw AD curve
c) Analyze, what will happen, if r (real interest rate) increases.
d) Interpret coefficient e. Do you expect the value of this coefficient will be higher in the UK or Senegal?
e) Based on point a), solve the equation for r variable.
f) Based on point e), draw the function r = f(Y) (hint: r should be on the vertical axis, Y should be on the horizontal axis).
2. The real demand for money (Md = Md (nominal)/P) is expressed as a linear function:
(1) Md = kY-hr
(2) Ms = Md
a) Explain the sign of coefficients k and h. What types of money demand do they refer to?
b) Explain why there is no equation for the money supply.
c) Using equation (1), express i as the function of Y (simply solve it for r variable).
d) Draw the function obtained in point (c) on the same graph as in point 1.f).
3. Based on the graph you draw in point d), analyze the effect of the following events on the economy. Make sure to explain everything step-by-step.
EXAMPLE a) The central bank increases the money supply.
Ms increases => interest rate decreases => investment increases =>Y increases
On the graph: LM shifts to the right; at the new equilibrium point, Y increases, interest rate decreases.
b) The government increases taxes.
c) The government increases government spending.
d) MPC increases.
e) the tax rate decreases.
In: Economics
Using the IS-LM model, analyze the effect of the following events on the economy. Show the graphs and explain the changes step-by-step (Example: Increase in tax rate => Lower disposable income => Lower Consumption => Lower AD => Lower output/income => Lower money demand => Lower interest rate).
In: Economics