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    A mathematically fair bet: Is gambling irrational

    A mathematically fair bet is one in which the amount won will on average equal the amount bet,for example, when a gambler bets say, $100 for a 10 percent chance to win $1000 ($100=.10x$1000). Assuming diminishing marginal utility of dollars, explain why this is not a fair bet in terms of utility. Why is it even a less fair bet w

    CPI calculations

    1. Between 1929 and 1933, GDP measured in current prices fell from $96 billion to $48 billion. Over the same period, the relevant price index fell from 100 to 75. a. What was the percentage decline in nominal GDP from 1929 to 1933? b. What was the percentage decline in real GDP from 1929 to1933? Show your work. 2. Compute

    Olipology Markets

    When he retired as CEO of American Airlines, a position he held for 18 years, Robert Crandall was described in a Newsweek article (June 1, 1998) as "one tough [expletive]." Other nicknames Crandall garnered during his career included Fang, Bob the Butcher, and Wretched Robert. Newsweek noted the Crandall's "salty language and b

    Profit Maximizing Strategy

    Firms that make gaming systems typically charge a price close to average cost on the game system itself, and do not change that price even when the systems are scarce or demand increases. Why is this a profit maximizing strategy?

    Assessing PMT

    Please help solve this. A philanthropist working to set up a permanent endowment wants to deposit money each year, starting now and making 10 more (i.e., 11) deposits, so that money will be available for research related to planetary colonization. If the size of the first deposit is $1 million and each succeeding one is $100,

    Minimizing average cost

    The total cost of producing Q units of a commodity is: C(Q) = 4Q^2 + 40Q + 36 Q > 0 Show that the Q that minimizes the average cost A(Q) also is the Q where the marginal cost is equal to the average cost.

    Inflationary Pressures

    Testing procedures required by the US Food and Drug Administration raise the cost and price of drugs. Should we eliminate such requirements in order to ease inflationary pressures? How about the regulation of hot dog content?

    The areas affected by this practice are generally populated

    The areas affected by this practice are generally populated by people of color. So, isn't raising the standards a form of discrimination? If credit-worthy people in these areas can't get loans, how will the economic status of the areas ever improve?

    Optimal Pricing Strategy Choice

    You own a franchise of rental car agencies in Florida. You recently read a report indicating that about 80 percent of all tourists visit Florida during the winter months in any given year, and that 60% of all tourists traveling to Florida by air rent automobiles. Travelers not planning ahead often have great difficutlty findin

    Production cost relations

    You have been hired to manage a small manufacturing facility, which has cost and production data given in the table attached. Workers Total Labor Cost Output Total Revenue 1 $500 100 $700 2 1000 280 1150 3

    Macroeconomic variables are studied.

    What variables other than price appear to have the biggest impact on the demand for McDonaldâ??s products? How much influence does the company have over these variables?

    Between October 2004 and 2005, real GDP in the United States

    Between October 2004 and 2005, real GDP in the United States increased by 3.6 percent, while nonfarm payroll jobs increased by only 1.4 percent. How is it possible for output to increase without a proportional increase in the number of workers? What are the implications in our economy of more output being produced by less worker

    the value of the simple multiplier.

    Use the information in the table to calculate the value of the simple multiplier for the following economy. Year Income(Y) Consumption (C) Savings (S) Investment (I) (m) (m) (m) (m) 1 200 160

    The Wealth Effect

    if every $1,000 increases in the real price of homes adds 5 cents to annual consumers spending (the "wealth effect"), by how much did consumption decline when home prices fell by $2 trillion in 2006-8?

    Money Supply and Velocity

    If the government increases the money supply by 50%, and the velocity of money and real GDP remain constant a) what percentage will the inflation tax be? b) what percentage increase or decrease will the value of real cash balances be? Please show steps and reasoning.

    What is the nominal GDP?

    Number 1. Year Price of Good 1 Quantity of Good 1 Price of Good 2 Quantity of Good 2 2006 $2 5 $4 10 2007 $4 10 $8 5 The table above shows the prices and quantities of two goods produced in a country in 2006 and 2007. These are the only goods produced in the country. What is the nominal GDP in 20

    Analyzing the Purchasing Power of Workers

    The New York Times cost $0.15 in 1970 and $0.75 in 2000. The average wage in manufacturing was $3.23 per hour in 1970 and $14.32 in 2000. a. By what percentage did the price of a newspaper rise? b. By what percentage did the wage rise? c. In each year, how many minutes does a worker have to work to earn enough to buy a news

    Rate of return for Jean Splicer

    Suppose Jean Splicer, an investor, buys $300,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $315,000. Assume the value of the CPI at the date of Jean's purchase was 180 and rose by the sale date one year later to 190 while the value of the GDP Deflator was 120 a

    Managerial Economics

    Use the following data for a perfectly competitive firm and the profit-maximizing input-combination rule to identify how many workers the firm will employ to maximize profits. Number of Workers (L) MRPL MRCL 1 $200 $30 2 150

    Gross Domestic Product

    The GDP is the value of all final goods and services produced: within the nations boundaries. by domestically owned companies. by citizens of the country. by domestically controlled companies.


    THE RECESSION OF 2001â?"WHICH COMPONENT OF AD DECLINED THE MOST? Use the interactive feature of the Bureau of Economic Analysis Web site, www.bea.gov, to access the National Income and Product Account Tables. Select Interactive Data Tables, which is listed under Publications. On that page, select National Income and Product Acc

    Use the GDP data from 1929 to 2008 collected in the first part of this assessment (Assignment 4 Data Collection) to match the following GDP numbers with the corresponding year. (Points : 10) : 103.6 1 : 1981 : 86.1 2 : 1938 : 101.4 3 : 1983 : 3536.7 4 : 1940 : 3128.4 5 : 1929

    Use the GDP data from 1929 to 2008 collected in the first part of this assessment (Assignment 4 Data Collection) to match the following GDP numbers with the corresponding year. (Points : 10) : 103.6 1 : 1981 : 86.1 2 : 1938 : 101.4 3 : 1983 : 3536.7 4 : 1940 : 3128.4 5

    Why charge on a marginal basis?

    Please comment: If a fixed number of industrial polution permits are marketable, then we should just sell the right to smoke to the highest bidders rather than ban smoking outright in many cities, towns, business outlets, restaurants, and bars. It would reduce the economic losses and make the market more efficient.

    Calculate the range for beauty lotion

    Beauty lotion is a skin-moisturizing product that contantains rich oils, blended especialy for overly dry or neglected skin. The product is sold in 5-once bottles by a wide range of retail outlets. In an on going review of product quality and consistency, the manufacturer of Beauty Lotion found a sample average product volume of

    Real GDP rose by what percent?

    Show calculation and explain answer Suppose nominal GDP in 2005 was $14 trillion and in 2006 it was $15 trillion. The general price index in 2005 was 100 and in 2006 it was 103. Between 2005 and 2006 real GDP rose by what percent?


    Consider the price index attached. What are the values for A, B, and C? Was there inflation from 2006 to 2009? If the price changes above occurred for all goods across the economy during the four year period, explain how nominal GDP and real GDP would differ.

    Real Wage Growth and Nominal Wage Growth

    Suppose you receive a 4 percent increase in your nominal wage. Over the year, inflation runs about 7 percent. Which of the following statements is TRUE? 1. Your real wage increased 2. Both the nominal and real wages increased 3. Both your nominal and teal wages decreased 4. Although your nominal wage fell, your real

    Determine the unknown value

    For the cash flow shown below, if the interest rate is 10% per year, what is the unknown value? Year 0 1 2 3 ---------------------------------------------------- Cash Flow $-2,000 $1,000 X $1,200