homework3summer2007

homework3summer2007 - Economics 302 Summer 2007 Homework #3...

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Economics 302 Summer 2007 Homework #3 Homework will be graded for content as well as neatness. Sloppy or illegible work will not receive full credit. You will find it helpful to do this work using Excel. 1. The total adult population in your country is constant and equal to 500,000 people. In your country there are initially 400,000 people in committed relationships (C) and 100,000 people who are not in committed relationships (F). In this example, “C” stands for committed and F for “free”. There are pros and cons to being in either group and in your country there is substantial movement between these two categories. a. What is the initial percentage of people in committed relationships in this country? Now, suppose that each year the rate of commitment to committed relationships , m, is 10% of the previous year’s free population while the rate of separation, s, is 20% of the previous year’s committed population. Use this information to answer the following questions. Note: the adult population in your country is unchanging and should therefore always sum to 500,000. b. Calculate the values for the end of the first year given the values of m and s. You can do this without Excel, but you will find it infinitely easier to do this problem using Excel. Committed Relationships (C) Free from Relationships (F) Total Adult Population Initial Levels at Beginning of Year Change due to committing to a relationship XXX Sub-total Change due to leaving committed relationship XXX Total c. At the end of the first year, what is the percentage of people in committed relationships in this country? 1
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d. Calculate the values for the end of the second year given the values of m and s, and the values you calculated in part (b). Use the following table to report your answers. Committed Relationships (C) Free from Relationships (F) Total Adult Population Initial Levels at Beginning of Year Change due to committing to a relationship XXX Sub-total Change due to leaving committed relationship XXX Total e. At the end of the second year, what is the percentage of people in committed relationships in this country? f. Calculate the values for the end of the third year given the values of m and s, and the values you calculated in part (d). Use the following table to report your answers. Committed Relationships (C) Free from Relationships (F) Total Adult Population Initial Levels at Beginning of Year Change due to committing to a relationship XXX Sub-total Change due to leaving committed relationship XXX Total g. At the end of the third year, what is the percentage of people in committed relationships in this country?
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homework3summer2007 - Economics 302 Summer 2007 Homework #3...

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