What is measured by a stock’s “beta”? Suppose that stock A has a higher beta than stock B, but its rate of return has a lower standard deviation than that of stock B. According to the CAPM, which stock should be expected to offer a higher average rate of return? Explain.

How will U.S. Healthcare look in 2050?

What does the better economic growth performance of Botswana compared to Nigeria tell us about institutions versus natural resources as causes of economic growth?

What is a strong and clear thesis statement about poverty in the US?

Here is my intro to my essay but not sure if thesis (last sentence is good)

Poverty is about not having enough money to meet basic needs such as food, clothing and shelter. However, poverty is much more than just not having enough money. It can be not having a job that pays more than minimum wage, those living under a single parent household, or those whose head of the household is unemployed. It is fear for the future and basically living one day at a time or paycheck to paycheck. Not to mention, when poor people are excluded or labeled as being a certain way or having certain negative tendencies within a society, in the end it can lead to damaging consequences for society. In other words, we all pay the price for poverty. Something needs to be done to help the poor get out of poverty and improve our economy and society in the United States.

The combination of falling U.S. housing prices and the large number of subprime borrowers defaulting on their mortgages just prior to the financial crisis of 2008 created a solvency problem for U.S. commercial banks that had provided mortgage loans to subprime borrowers and held those mortgages on their balance sheets (ie. they did not sell them to Special Purpose Vehicles). Briefly explain how these two events could threaten to make those U.S commercial banks insolvent.

The city is considering 2 separate cell tower providers. The city expects a benefit-cost ratio of 1.0 or better, and their cost of capital is 10% per year. Assume repeatability

a) Conduct benefit-cost ratio on the Verizon and AT&T projects and indicate which project is the preferred project (Show Work)

b) Conduct an incremental difference to validate the decision.

Which of the following statements about the effects of the tariff compared to free trade are correct? Check all that apply.

The tariff benefits producers in Alagir.

In Alagir, some workers at retail and shipping companies that import iGadgets lose their jobs.

The tariff will not reduce the price differential between Alagir and Ertil.

The extra cost of iGadgets gets passed on to products and services using iGadgets in the production process.

As a result of the tariff, the price of the imported iGadget always rises above its domestic price.

Suppose country A has a central bank with full credibility, and country B has a central bank with no credibility. How does the credibility of each country’s central bank affect the speed of adjustment of the aggregate supply curve to policy announcements? How does this result affect output stability? Use an aggregate supply and demand diagram to demonstrate.

Suppose the central bank is following a constant-money-growth-rate rule and the economy is hit with a severe economic downturn. Use an aggregate supply and demand graph to show the possible effects on the economy. How does this situation reflect on the credibility of the central bank if it maintains the money growth rule? How does it reflect on the central bank’s credibility if it abandons the money growth rule to respond to the downturn?

Consider a general model of intertemporal consumption. Paul lives for two periods, working in the first and retiring in the second. Paul’s income is 1000 in the first period and is 0 in the second period. He must decide how much to consume in the first period and how much to save for consumption in the second period. Any money that Paul saves in the first period will earn a 5% interest. For the questions below, you only need to write the budget constraints and don’t need to solve the maximization problem.

(a) (5 points) Write Paul’s consumption in the second period (c2) as a function of his consumption in the first period (c1). Note that any of Paul’s income in the first period that is not consumed will be saved.

(b) (5 points) If Paul must pay a 25% tax on his income in the first period, how would your answers to question (a) change?

(c) (5 points) Now assume that Paul must pay a 25% tax on his income in the first period and a 20% tax on his interest income in the second period, how do your answers to question (b) change?

The market for a particular good is described by the following demand and supply equations respectively: QD = 448 – 3.5P and QS = 2.5P – 80. Consider that after much discussion among policymakers and following a final vote, the government implements a 20% ad valorem tax on sellers of the good. The market adjusts and is currently in equilibrium.

1. After the tax is implemented, what quantity of the good is traded?

2. What price do buyers pay?

3. What price do sellers receive?

4. After the tax is implemented, do consumers or producers face any tax burden? If so, then state who faces a higher burden, and what this implies about the group’s price elasticity relative to the other group’s price elasticity.

Using the principles of supply and demand as applied to labor markets, what are the effects of placing a universal binding minimum wage on a labor market that is otherwise perfectly competitive? What are the effects if the minimum wage is not universal (i.e., if there is a sector of the labor market not covered by the minimum wage – such as waiters and waitresses)? In both cases briefly discuss potential efficiency effects.

Suppose that the market for rutabagas (in case you don’t know, it is a root vegetable that’s also known as Swedish Turnip) is competitive. The demand for rutabagas is Q = 2, 000 − 100P and the supply of rutabagas is Q = −100 + 200P.

(a) (10 points) Suppose that Governor Sloop imposes a $2 per unit tax to be paid by consumers. Who bears the statutory incidence of the $2 per unit tax? Who bears the economic incidence of this tax? [A graph can be helpful but not required.]

(b) (5 points) What is the deadweight loss of the tax?

(c) (10 points) Suppose now that Governor instead imposes that the $2 unit tax is to be paid by the stores directly. What will happen to the “sticker price” (i.e. price paid by consumers) on rutabagas? Verify that the consumers’ tax burden would stay the unchanged.