Question Ricardian Equivalence Suppose that there is a credit market imperfection due to asymmetric information. In the economy, a fraction b of consumers consists of lenders, who each receive an endowment of y units of the con- sumption good in the current period, and 0 units in the future period. A fraction (1-b)a consumers are good borrowers who each receive an endowment of 0 units in the current period and y units in the future period. Finally, a fraction (1-b) (1-a) of consumers are bad borrowers who receive 0 units of endowment in the current and future periods. Banks cannot distinguish between good and bad borrowers. The government sets G=G' = 0, and each consumer is asked to pay a lump-sum tax oft in the current period and toe in the future period. The government also cannot distinguish between good and bad borrowers, but as with banks can observe endowments. 1. Write down the government's budget constraint, making sure to take account of who is able to pay their taxes and who does not. 2. Suppose that the government decreases t and increases toe in such a way that the government budget constraint holds. Does this have any effect on each consumer's decisions about how much to consume in each period and how much to save? Show with the aid of diagrams. 3. Does Ricardian equivalence hold in this economy? Explain why or why not

Harley-Davidson is known for its strong brand name and loyal following and yet by 1980 Harley was on the verge of bankruptcy. Why was Harley in deep trouble even with such a strong brand name? a) Harley-Davidson cannot compete in foreign markets b) Competitors beat Harley on reliability and cost c) All of the above d) Harley-Davidson bikes are technologically inferior COURSE: STRATEGIC BUSINESS DECISIONS

(1 point) Determine the average rate of change of the following function between the given values of the variable: f(x) = x4 - - X; x = -2, x = 3 Average rate of change = .

Question Suppose three point masses are placed in the xy-plane as follows (assume coordinates are given in meters): mi = 5 kg, placed at (-2, -3) m2 = 3 kg, placed at (2,3) 'm3 = 2 kg, placed at (-3, -2) Find the center of mass of the system. Write your answer as an ordered pair Provide your answer below:

let f(x)= x^2-5, g(x)= 2x^3+x and p(x)= f(x)g(x). a) computedp/dx b) compute f'(x)g'(x)

10. A box is lying on top of a trailer, which is parked on the road. According to Newton's third law, what is the reaction force to the gravitational pull of the box on the trailer? The normal force of the trailer on the box The gravitational pull of the trailer on the box The gravitational pull of the trailer on Earth The normal force of the road on the trailer The weight of the trailer The normal force of the trailer on the road The gravitational pull of the box on Earth The weight of the box

Suppose that a company is developing a new touch-screen cell phone. Historically, 70% of their new phones have resulted in high consumer demand, whereas 30% have resulted in low consumer demand. The company has the decision of choosing between two models with different features that require different amount of investment and have different sales potential. Estimated profit/loss are shown in the payoff table below. State of Nature High demand, ($) Low demand, ($) Model 1 300,000 -40,000 Model 2 275,000 -15000 Now suppose the firm conducts a market research study to obtain sample information and better understand the nature of consumer demand. The market research cost $10,000 Analysis of past market research studies, conducted prior to introducing similar products, has found that the survey response will be either high or low. There is a 69% chance that the survey will return a high survey response (results) and there is a 31% chance that the survey will result in lo-demand response (results). The relevant conditional probabilities are as follows: P (high consumer demand, high survey response = 0.913) P (low consumer demand, low survey response = 0.087) P (high consumer demand, high survey response = 0.226) P (low consumer demand, low survey response = 0.774) Calculate the expected value of sample information (EVSI). Develop a decision tree and analyze using QM for Windows. Determine the optimal solution.