Homework 6: Present Value

We sought out a soothsayer, who did sayeth some sooth. She stirred her cauldron and foresaw that terrible things would happen to Evanston. 100 years from this very day, the crimes of John Evans will come back to punish the residents of this town, causing $300 million dollars of damages. However, we can avert this terrible fate at the low, low cost of just $6 million dollars today (paid to descendants of those Evans wronged). That’s right, for just $6 million dollars now, we can avert $300 million dollars of damage to future Evanston residents! You can’t beat this deal!

1. What is the most we would be willing to pay to avert this future harm if our discount rate is 1.4% per year?

2. What is the most we would be willing to pay to avert this future harm if our discount rate is 4% per year?

3. What is the most we would be willing to pay to avert this future harm if our discount rate is 10% per year?

Suppose that we could buy a bit of Evanston lakefront for $130 million and build a lovely public beach that would deliver social benefits of $5 million dollars per year forever, starting one year from now.

4. What is the most we would be willing to pay to build this park if our discount rate is 1.4% per year?

5. What is the most we would be willing to pay to build this park if our discount rate is 4% per year?

6. What is the most we would be willing to pay to build this park if our discount rate is 10% per year?

7. Think of the basic Pigouvian Externality situation.

Private Marginal Benefit = 600 - 2*Q

Private Marginal Cost = 30 + Q

Marginal Damage = 90

Private market equilibrium quantity = Q_P = (600-30)/(2+1) = 190

What is the optimal Pigouvian tax and socially optimal quantity?

8. Same setup as in the previous problem, except that the Marginal Damage doesn’t occur now, but will actually happen in 10 years. Let the discount rate be 3%.

What is the optimal Pigouvian tax and socially optimal quantity today?

9. Same setup as in the previous problem, except we just had an election, and so now the discount rate is 7%. What is the optimal Pigouvian tax now? What is the optimal social quantity today?

explain succinctly the fundamental concepts and principles behind the simple motor that you have built

How do built-in stabilizers work to reduce rises and falls in the level of nominal GDP?

What else was going on in US history at the time the Vietnam Veterans Memorial was being built?

For today's lab we will be using the Car Object Class which we built in Lab 1. I have attached my solution if you would prefer to use my solution instead of your own solution.

We will working on remembering how to build sub-classes and user interfaces. So we will be creating new Java files for:

• An Interface called GreenHouseGasser
  • Requires a method called CO2() which returns how much carbon dioxide the Object produces.
  • Make sure to update Car so that Car implements GreenHouseGasser. Cars should produce 1.5 units of CO2 for every mph the car is traveling.
• A Car sub-class called SportsCar:
  • Overrides the accelerate() method. SportsCars accelerate twice as fast as regular Cars
  • Overrides the CO2() method. SportsCars should be using a factor of 3.25 units of CO2 for every mph
• A Car sub-class called EcoCar
  • Overrides the accelerate() method. EcoCars accelerate 25% as fast as regular Cars
  • Overrides the CO2() method. EcoCars should be using a factor of .33 units of CO2 for every mph

As your are building/updating your objects, remember to test. You'll need update the Driver to test your new methods and Objects!

Submit all of your .java files in one jar or zip file.

Grading Breakdown:

• Driver tests all new methods and objects -- 25%
• Interface created correctly and Car updated to implement the Interface -- 25%
• SportsCar correctly created -- 20%
• EcoCar correctly created -- 20%
• JavaDoc comments! -- 10%

Here is the Car Object pre-made:

public class Car
{
private String name;
private int currentSpeed;
  
public Car(String inName)
{
name = inName;
}
  
public void accelerate()
{
currentSpeed += 10;
}
  
public void park()
{
currentSpeed = 0;
}
  
public void printCurrentSpeed()
{
System.out.println("Current Speed is: " + currentSpeed);
}
}

Here is the driver that is supposed to be used:

public class Driver {
  
   public static void main(String[] args) {
       // create new Audi car
       Car audi = new Car("Audi");
       // create new Nissan car
       Car nissan = new Car("Nissan");
      
       // print current speed of Audi - it is 0
       audi.printCurrentSpeed();
      
       // call the accelerate method twice on Audi
       audi.accelerate();
       audi.accelerate();
      
       // call the accelerate method once on Nissan
       nissan.accelerate();
      
       // print current speed of Audi - it is now 20 mpH
       audi.printCurrentSpeed();
       // print current speed of Nissan - it is 10 mpH
       nissan.printCurrentSpeed();
      
       // now park the Audi car
       audi.park();
      
       // print current speed of Audi - it is now 0, because the car is parked
       audi.printCurrentSpeed();
   }
}

Are negative real yields on Treasurys expected to change in the near future?

Which of the following is characteristic of metals?

Which of the following is characteristic of insulators?

Which of the following is characteristic of semiconductors?

Match each of the following answers:

Large number of carriers independent of temperature, and low electron mobility that decreases with increasing temperature.

Intermediate number of carriers independent of temperature, and high electron mobility that decreases with increasing temperature

Near zero conductors, no real mobility estimates and near zero conductivity.

None of the above.

A research Van de Graaff generator has a 1.98-m-diameter metal sphere with a charge of 4.75 mC

on it.

a) What is the potential near its surface?

MV

b) At what distance from its center is the potential 1.02

MV

?

m

c) An oxygen atom with 3

missing electrons is released near the Van de Graaff generator. What is its energy in MeV

at this distance?

MeV

We performed a linear regression analysis between number of times on phone per drive and number of near accidents. The equation is Y= 0.320 + 0.943X, where Y is the number of times on phone per drive and X is the number of near accidents. calculate the p-value and give a conclusion.