https://ucanwest.ca/ The real GDP per capita of many countries such as China and Korea are greater than that of the US. Does this indicate that these countries will eventually overtake the US in terms of the growth rate of real GDP per capita? Explain. Answer: 5. 6. As we all know that pandemic COVID -19 is creating the threat for the economic meltdown. You are required to analyze this pandemic effects on the aggregate demand and aggregate supply of Canadian economy. Answer 7. If consumers save a larger portion of their income, what effect would this have on the output, employment, and price level in the short run and long run? Answer: 8. The AD-AS model shows a snapshot of the economy at a given point in time. Both economic growth and inflation are dynamic phenomena. Suppose economic growth is 4% per year and aggregate demand is growing at the same rate. What does the AD/AS model say the inflation rate should be? Answer:

https://ucanwest.ca/ The real GDP per capita of many countries such as China and Korea are greater than that of the US. Does this indicate that these countries will eventually overtake the US in terms of the growth rate of real GDP per capita? Explain. Answer: 5. 6. As we all know that pandemic COVID -19 is creating the threat for the economic meltdown. You are required to analyze this pandemic effects on the aggregate demand and aggregate supply of Canadian economy. Answer 7. If consumers save a larger portion of their income, what effect would this have on the output, employment, and price level in the short run and long run? Answer: 8. The AD-AS model shows a snapshot of the economy at a given point in time. Both economic growth and inflation are dynamic phenomena. Suppose economic growth is 4% per year and aggregate demand is growing at the same rate. What does the AD/AS model say the inflation rate should be? Answer:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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You consider buying a lot on which you will build a small apartment complex. The asking price for the lot is $2,000,000 and the estimated cost to build the apartment complex is $5,000,000 (construction should take one year). One year from the date you intend to purchase the lot the city is going to make an important decision regarding the use of the land just across from your lot. You believe that there is a 35% chance that the decision would be favorable to you and a 65% chance that it would be unfavorable. In case of a favorable or unfavorable outcome your complex should generate an NOI of $400,000 or $300,000 respectively. For simplicity, you may assume that at any time you can sell your complex for a 5% CAP and your required rate of return is 8%. a. Calculate the value of the lot using the traditional approach.b. Calculate the value of the lot using the real option approach.c. Should you buy the lot?d. In case that you decided to buy the lot, should you build the apartment complex…
Domingo has a total wealth of $500,000 composed of a house worth $100,000 and $400,000 in cash. He keeps the cash in a safe deposit box, so that it is completely safe. However, there is a 10% chance that his house will burn down by the end of the year and be worth nothing and a 90% chance that nothing will happen to it. Without insurance, the expected value of his end-of-year wealth is: Select one: a. $410,000. b. $490,000. c. $450,000. d. $485,000.
Let's say we have a game called "guess 2/3 of the average," where players can choose any number x ∈ [0, 100]. 5% of players are at level N0, 40% at level N1, 35% at level N2, 15% at level N3, and 5% at level N4. Players at level N0 choose a number randomly, while players at higher levels choose a number according to their beliefs, which are as follows: players at higher levels believe that all other players are one level lower than themselves. (a) What will be the winning number and which level players will be the winners? (b) Under the assumptions of classical game theory, the mentioned version of the game "guess 2/3 of the average" has exactly one equilibrium, in which everyone chooses the number 0. Prove that this outcome is indeed a Nash equilibrium of the game.
You are presented 2 investment options. Which one gives you a better return? In option A, you pay $3,000 today and receive $750 at the end of the year for the next 5 years. In option b, you pay $2,000 today and receive $3,000 at the end of five years
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6. Jerry plans to buy a new Bluetooth headset. He knows that the same product is offered in different shops with prices of $44, $49, and $60, and with odds of one-third of finding each price. He just stopped at a shop and knows that their price is $49. If the search cost is $1 per additional search, what should Jerry do?
Jonathon and his family were negotiating a lease for commercial premises to be used for their Italian restaurant. Part of the negotiation concerned the ability of Jonathon to demolish a wall in order to remodel the interior and build a pizza oven. The landlord shook Jonathon’s hand and told him they had a deal and that he could go ahead and get started. Jonathon took out a large bank loan to finance the remodelling. Four weeks later, Jonathon received a letter from the landlord indicating that he did not intend to proceed with the lease. Jonathon has already spent $100,000 on the remodelling but he has not received a signed a lease as yet. Since there is no breach of contract, does Jonathon have any other recourse in equity?
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An investor allocates $30,000 and $50,000 to two assets (A1 and A2). These assets generate 5% and -4.5% rate of returns, respectively. She allocates the remaining 50% of her portfolio to an asset (A3), which provides 4.5% rate of return. Calculate the portfolio's rate of return.
INV 1 4c You have invested in a portfolio of 60% in risky assets (Portfolio R) and 40% in T-bills. The risky portfolio is described below: E(rR)=12% σR =15% If R is the optimal risky portfolio, and your degree of risk aversion is A=3, is your weighting between the T-bills and portfolio R optimal for you?
please answer within 30 minutes.
15. A city mayor decides to construct a new bridge over the major river in the town. The estimated life of such a structure will be 20 years. There is a 70% probability that the total initial costs (consulting fees and construction) will be $800,000 and a 30% probability that such costs would be $1 million. There is 100% probability that the maintenance costs would be $30,000 every 5 years. How much money should the city borrow now in order to carry out the entire project including maintenance? The interest rate is 5%.