Economics Answers

How would the estimated results have differed if the authors had not divided each country's prices, per capita income, and per capita pharmaceutical consumption by that of the united states?

Suppose there are two investors: A and B. Both plan to retire after T years but save for their
retirement in very different ways. Investor A puts $1 into his retirement account at
the beginning of each year for T years (i.e., at t = 0, 1, . . . , T − 1). Investor B does
not make any contributions for the first N years, and try to make it up with more
contributions at the start of each year for the remaining T −N years, i.e., he will make
contributions at t = N, N + 1, . . . , T − 1.
(a) Suppose Investor B wants to have the same amount of money as Investor A when
both of them retire. What is the annual contribution that Investor B has to make
in the remaining T − N years. Express your answer as a function of r, N and T.
(b) Suppose r = 0.02/year and T = 60 years. Plot the annual contribution that
Investor B has to make in part (a) as a function of N for 0 ≤ N ≤ 40 years.
Repeat the same exercise for r = 0.04/year and r = 0.06/year.

Call this a stupidly generalized question, but I wanted a well-educated guess as to how the U.S. economy will fair over the next five years. I'm at a crossroads where I have to choose between graduate school (in a humanities major of all things) and joining a police department (I'm joining a PD with or without a master's or doctorate. Further, nether ASU, nor U of A offer part-time graduate degrees. The only thing that's having me reconsider this option is how the economy will do during the time period between getting an advanced degree and employment, since I'm certain a major recession would limit job opportunities across the board.

Anyway, if you can answer, I'd greatly appreciate it, and if not the same sentiment still applies.

Using a simple model, explain coherently how internal economies of
scale give rise to some trade patterns observed in the world today.
What are these patterns of trade known as? Your answer should
briefly, but adequately, define economies of scale.

The yields to maturity on five zero coupon bonds are given below:
Years to Maturity: 1 year (yield of 12%), 2 years (yield of 14%), 3 years (yield of 15%), 4 years (yield of 15.5%), and 5 years (yield of 15.7%)
(a)What is the implied forward rate for the third year?
(b) Compute the yield to maturity of a 5-year annual coupon bond with a coupon
rate of 5%. Also compute the yield to maturity of a 5-year annual coupon bond
with a coupon rate of 10%. Which one is higher, why?

A market's demand and supply are given as follows: Supply is equal to 3p, and demand is equal to 120-5p. An excise tax is imposed on this market at a rate of $8 per traded unit. At equilibrium, what is value of the tax revenue?

Suppose that the market for unskilled labour is a competitive market and can be described as by the following demand and supply curves:
D= 60,000-5,000W
S= 5,000W-35,000
W is wage rate per hour for labour, D and S are demand and supply for unskilled labour, both measured in hours.

Calculate the equilibrium rate and quantity of labour employed and draw a diagram to illustrate your answer

real GDP has increased an average annual rate of about
real GDP per capita has increased at an average annual of about
The real GDP growth rate minus the real GDP per capita growth rate (i.e,c-d) equals the

Consider a small open economy in equilibrium with a zero current account balance. What happens to national saving, investment, and the current account balance in equilibrium if
(a) future income rises?
(b) business taxes rise?
(c) government expenditures decline temporarily?
(d) the future marginal product of capital rises?

Suppose there are two investors: A and B. Both plan to retire after T years but save for their
retirement in very different ways. Investor A puts $1 into his retirement account at
the beginning of each year for T years (i.e., at t = 0, 1, . . . , T − 1). Investor B does
not make any contributions for the first N years, and try to make it up with more
contributions at the start of each year for the remaining T −N years, i.e., he will make
contributions at t = N, N + 1, . . . , T − 1.
(a) Suppose Investor B wants to have the same amount of money as Investor A when
both of them retire. What is the annual contribution that Investor B has to make
in the remaining T − N years. Express your answer as a function of r, N and T.
(b) Suppose r = 0.02/year and T = 60 years. Plot the annual contribution that
Investor B has to make in part (a) as a function of N for 0 ≤ N ≤ 40 years.
Repeat the same exercise for r = 0.04/year and r = 0.06/year.