Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Chapter 17, Problem 4E
To determine
The banning of lower grades and the moral hazard.
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Why is Managerial Economics relevant to you as a student?
Suppose you currently earn $40,000 a year. You are considering a job that will increase your lifetime earnings by $400,000 but that requires an MBA. The job will mean also attending business school full time for two years at an annual cost of $50,000. You already have a bachelor’s degree, for which you spent $150,000 in tuition and books.
Which of the above information is relevant to your decision on whether to take the job?
What is the opportunity cost of going to school to study MBA?
Should you take the job? [Note: You will need to get the MBA]
What’s Wrong with Economics: A Discussion Between Paul Krugman and Jeff Madrick. (2015). Challenge (05775132), 58(2), 112–134. · Cochrane, J. H. (2011). How Did Paul Krugman Get It so Wrong? Economic Affairs, 31(2), 36–40. You are expected to critically evaluate the three articles provided, identify themes and gaps, then synthesize what you have learned, keeping in mind Krugman’s economic impact. The paper should be a minimum of 1500 words in APA format.
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Microeconomics (9th Edition) (Pearson Series in Economics)
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- Buying and selling textbooks are two separate decisions made at the margin. Textbooks create value both when they are bought and when they are sold. Think about your decision to buy the textbook for this course. You paid $225 for the book, but you would have been willing to pay $400 to use the book for the semester. Suppose that at the end of the semester you could keep your textbook or sell it back to the bookstore. Once you have completed the course, the book is worth only $90 to you. The bookstore will pay you 50% of the original $225. How much total value have you gained? $arrow_forwardBuying and selling textbooks are two separate decisions made at the margin. Textbooks create value both when they are bought and when they are sold. Think about your decision to buy the textbook for this course. You paid $200 for the book, but you would have been willing to pay $450 to use the book for the semester. Suppose that at the end of the semester you could keep your textbook or sell it back to the bookstore. Once you have completed the course, the book is worth only $70 to you. The bookstore will pay you 50% of the original $200.arrow_forwardMateo works eight hours per day. Today he has to decide whether to work overtime and stay one more hour in the office, or go back home and spend that hour studying for his economics exam. His company pays him $80 per day if he works eight hours, and $100 per day if he works nine hours. If Mateo studies one more hour, his exam score increases from 75 to 80, what is Mateo 's rational decision? Mateo decides to work overtime only if he values getting Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- Should grades in an economics class be rationed according to the dollar price instead of how well students do on exams? If they write and prospective employers heard of it, what effect might this have on the value of your college degree?arrow_forwardGiven your experience and what you have learned from the chapter, consider what factors are likely to lead to a high income. Using your knowledge, identify each of the given statements as true or false. True Starting a business is the easiest way to earn a high income. Answer Bank Many people will experience poverty at some point in their lifetimes. If your parents earned higher incomes than average, you are more likely to earn a higher than average income. False Obtaining a master's degree guarantees you a higher income than just possessing a high school diploma.arrow_forwardDefine managerial economics and its relation with economics theory and decision science?arrow_forward
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