If the transit district decides to set the per-passenger fare at $0.35 for the first year and the per-passenger fare goes up $0.05 each year thereafter, the additional government subsidy (per passenger) needed for the district to break even in 20 years is most nearly

A group of 10 people seek out an insurance company to underwrite health insurance for its members. The expected medical spending for this group is $50,000, or 5,000 per person on the average. An additional 10 people join the group who have expected medical spending of $10,000 per person on average. The premium (incorporating net loading costs of 5 percent) will be approximately

Assume the government wants to increase GDP and income Y. It has $100 million to use. Explain why spending it on roads and bridges (government spending G) will increase Y more or less than if it used the money on transfer payments (R) such as welfare payments. You must refer to the multiplier and mathematically why one policy would be different from the other. Explain why one policy would work better than the other.

d. You work for Mr. Elon Musk and he has asked you to explain how his company can determine its optimal level of R&D spending.
i.   Please explain the general concept of optimal level of R & D spending ii.   List and explain the marginal cost and marginal benefit components 1. You have a good list of items in the slide set — just need to provide explanations of the items.

1. What should be the role of government in the economy? (You may feel it should be less, more, or it could be just about right). Defend your position with a compelling economic argument.
2. Does government fiscal policy work (taxes, spending)? Why or why not?
3. Are there any fiscal policies (taxes, spending) that you support? Why or why not?
4. Thinking about supply & demand, is government intervention required to close the recessionary gap or the inflationary gap? Why or why not?

• Discuss the relationship between saving and consumption.
• In your discussion, distinguish between saving and savings.
• Consumer spending is directly affected by expectation of future income.
  • What events might change consumer confidence?
  • Discuss and provide examples of events that may change consumer confidence and therefore impact consumer spending.
    • Do your best to avoid posting duplicated information if possible.

Where appropriate, cite examples from your text or other readings.

Suppose you are a politician debating the merits of a policy change in entitlement spending that will lead to an increase in the projected budget deficit over many years.

            a) Give alternative perspectives on this deficit spending. Why might the deficits not be quite as bad as they seem? Why might they be worse?

            b) Suppose an economist points out that the policy change will increase “generational imbalance”. Describe what this means and the consequences for intergenerational equity          (i.e. is it fair to have a generational imbalance?)

In Chapter3 and also in the growth model where we studied about the long run, deficit spending( a higher government spending for a given tax rate) appears to have a negative effect on the economy but in the IS-LM model we can see that the opposite is true. A higher G increases the GDP by enhancing demand. Which one do you think is true? Can you reconcile these two ideas? What is your conclusion in terms of practical policy?

Meg's pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). She would like to retire with a pension of $30,000 per quarter for 25 years. If she works 41 years before retiring, how much money must she and her employer deposit each quarter? (Round your answer to the nearest cent.)

A marketing researcher wants to estimate the mean amount spent​ ($) on a certain retail website by members of the​ website's premium program. A random sample of 92 members of the​ website's premium program who recently made a purchase on the website yielded a mean of ​$1400 and a standard deviation of ​$200. Complete parts​ (a) and​ (b) below.

A. Construct a 99​% confidence interval estimate for the mean spending for all shoppers who are members of the​ website's premium program.

____≤μ≤_____

​(Round to two decimal places as​ needed.)

b. Interpret the interval constructed in​ (a).

Choose the correct answer below.

A.With 99​% ​confidence, the mean spending in dollars for all shoppers who are members of the​ website's premium program is between the lower and upper limits of the confidence interval.

B.There is a 99​% probability that mean spending in dollars for all shoppers who are members of the​ website's premium program is between the lower and upper limits of the confidence interval.

C. 99​% of all shoppers who are members of the​ website's premium program have spent an amount in dollars that is between the lower and upper limits of the confidence interval.

D.The sample mean spending in 99​% of all samples of 92 members of the​ website's premium program will be between the lower and upper limits of the confidence interval.