On 1/1/2014, Otter Group purchased 60% (60000 shares) of Dolphin Ltd. for $50 per share, which was a $5 per share control premium.
Buildings and Equipment were undervalued by $1,000,000 and had a 10 year remaining life; IPR&D was allocated $550,000 with a
Public Economics 425, Spring 2016
Problem Set # 2
Muzi, Li, PSU email ID: myl5488
Instructor: Daolu, Cai
1. (a) Draw her budget constraint.
C
10
00
10 L
(b) Whats Marias optimal hours of consumption and leisure C*,L*, and her utility level
0
associated wi
Player Evaluation Assignment, ECON 315, Jadrian Wooten, Fall 2014.
This assignment is due at the beginning of class on Wednesday, Nov. 12. Written material should be typed, 12
pt. font, double spaced, and the whole assignment stapled together. Please do n
Chapter 6
10.
Smoking by individuals
o Yes there is an externality that exists, specifically a negative consumption
externality. When someone smokes, they are imposing a harm on to
others in the are who arent smokers by polluting the air. For every pack
a
Vijay Adipudi
11/16/2015
Econ 425 PS 6
1. (30 points) (Warm up exercise) Consider an economy populated by identical people
who live for two periods. They have preferences over consumption of the following
form: U = ln(c1) + ln(c2), where ct denotes the st
Homework 1.
Econ 425 Economics of Public Expenditures
Fall 2014
Due: September 10, before the lecture
Problem 1
Consumer wants to maximize happiness given by utility function u(c1 , c2 ) = 1 log c1 + 2 log c2 . His/her
income is M and the prices of goods
Homework for Unit 1, ECO 315, Jadrian Wooten.
Due September 22th by the end of class.
FAQs:
Do I have to type the homework?
Yes! Homework must be typed. You will receive a zero for turning in hand written homework.
You may draw graphs provided that they a
Question 1
Consider the following model of the economy
Production function: Y = AKN N2/2
Marginal product of labor: MPN = AK N.
where the initial values of A = 6 and K = 10.
The initial labor suppl
Homework 4
Econ 425 Economics of Public Expenditures
Spring 2015
Due: February 26, before the lecture
Problem 1.
Consider the model with education from class where the parent with a child solves the problem
max c1 + c2
c1 ,e2 ,c2
subject to
c1 + pe e2 = a
Economics 425
Homework 4
Lessons 7 and 8
1. (10 points) The lecture described how taxing income may change savings behavior.
Suppose instead that the government taxed consumption.
To be specific, suppose we have a two-period model. An individual earns lab
1
2
Eeononriee 415
Homework 5
[moon 9 end it]
cfw_15 points) Suppose the 1.3.5. govmomte tut policies on employer health coverage m to he changed
lopeieulmsuppmhealth pruniomepoid throuahtoemplnywwmmloogermmmpt. Io iteplwe.
the government provides a 255i-
Economics 425
Homework 6
Leanna 11ml:
1. cfw_10 points] Consider two metropolitan areas. one that has many small school districts and one that has only a
few large school disirlels. In I. 13mph, what are the efficiency and equity effects of introducing a
Economics 425
Solutions to Homework 4
Lessons 7 and 8
1. (10 points) The lecture described how taxing income may change savings behavior.
Suppose instead that the government taxed consumption.
To be specic, suppose we have a two-period model. An individua
1. Battle of the Sexes
Opera
Football
Opera
3,2
1,1
Football
1,1
2,3
In this situation, the husband prefers to go to the football game but the wife prefers to go to the
opera. Both players would be unhappy if they went separate ways so both would ideally
Vijay Adipudi
Problem Set 5
ECON 425
11/04/15
1. Current wage = $50,000
Next year potential wage= $20,000
5% chance of next years wage
a. EU = (.95 * (5000) + (.05 * (20000) = 48500
b. .05 * (50000-20000) = 1500
2.
a. Speed racer = % chance of accident
Lo
I am posting this document as a bare-bones study guide. Everyone can edit this document and
fill in things that they find useful when studying the topics. Here is a link to the original
document posted by Austin.you can see how much your current document
Economics 425
Homework 2
Lessons 3 and 4
1.
2.
(10 points) Suppose in a community 10 people each have a Marginal Benefit from streetlights equal to
MB=5-2Q, and five people each have a Marginal Benefit for streetlights of MB=7-Q, where Q is the
quantity o
Economics 425
Homework 1
Lessons 1 and 2
1.
Deriving Demand (9 points)
Suppose an individual has the following characteristics:
Utility=XY, which implies MUx=X-1Y , MUy=XY-1
where income M=500, =1/2, =1/4
a)
Derive the formula for the demand curve for goo
Economics 425
Homework 3
Lessons 5 and 6
1.
2.
The elasticity of demand for home computers is -2.5, the elasticity of demand for business computers is -.90, and the
elasticity of supply for computers for both purposes is 1.
a.
A per-unit tax of $200 is im
MIDTERM 2 EXAM REVIEW
1. Why can risk pooling be advantageous to health insurance providers?
a. They help predict the distribution of risk
b. The adverse selection problem doesnt exist
c. It helps to determine an individuals risk
d. Low administrative cos
I. RECAP OF WEDNESDAYS CLASS
A. Top 1% has 30% of the assets in the U.S.
1. This is odd given a smooth consumption model
2. Why do they save so much?
a. Uninsurable risk
b. Financial constraints
i. You want to do something big (project, business) in the f
I. RECAP OF WEDNESDAYS CLASS
A. Top 1% has 30% of the assets in the U.S.
1. This is odd given a smooth consumption model
2. Why do they save so much?
a. Uninsurable risk
b. Financial constraints
i. You want to do something big (project, business) in the f
I. MEASURING INEQUALITY
A. The multidimensional nature of inequality
1. Dimensions
a. Earnings
b. Income
c. Wealth (assets)
d. Consumption
e. Luck, talent, leisure, opportunities
2. Relative Income Inequality
a. Share of total income that accrues to the p
Vijay Adipudi
11/16/2015
Econ 425 PS 6
1. (30 points) (Warm up exercise) Consider an economy populated by identical people
who live for two periods. They have preferences over consumption of the following
form: U = ln(c1) + ln(c2), where ct denotes the st
Fair value of consideration transferred
Book Value of Super
acquisition-date fair and
Excess Fair Value over Book Valuebook value diferences
Accounts Recievable
(2,600,000-2,700,000)
Parts Inventory
(6,000,000-5,200,000)
Equipment
(19,500,000-17,600,000)
"WHY IS THERE SO LITTLE MONEY IN U.S.
POLITICS?"
BY: VIJAY ADIPUDI, SARAN KEIRA, THOMAS MANGAN
ARTICLE & AUTHORS
Why Is There so Little Money in U.S. Politics? appeared in the Winter 2003 issue of The Journal of
Economic Perspectives, published by the Ame
Economics 415
Homework 3
lessons 5 and 6
1. The elasticity ot'demand for home computers is -2.5. the elasticity oi'demand for business computers is ~90. and
the elasticity ot'supply for computers for both purposes is I.
a. A per-unit tart ofll'l is impose
I am posting this document as a bare-bones study guide. Everyone can edit this document and
fill in things that they find useful when studying the topics. Here is a link to the original
document posted by Austin.you can see how much your current document