Part 2 – Public Expenditure: Public Goods and Externalities Chapter 4 – Public Goods 1. a. Wilderness area is an impure public good – at some point‚ consumption becomes nonrival; it is‚ however‚ nonexcludable. b. Satellite television is nonrival in consumption‚ although it is excludable; therefore it is an impure public good. c. Medical school education is a private good. d. Television signals are nonrival in consumption and not excludable (when broadcast over the air). Therefore‚ they
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of the borrower and its past loan repayment performance. The term structure of interest rates is a market-wide factor and is likely to influence the base rate‚ but it should not influence the margin that applies to a borrower‚ so C is the correct answer. MORE: Financial Institutions‚ Instruments and Markets 5/e‚ pp. 390–391. The interest rate charged on a term loan will also depend on the following: • The credit risk of the borrower. This is the perceived creditworthiness of the borrower. A lender
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Chapter 4_class exercise True/False 1. The forecasting time horizon and the forecasting techniques used tend to vary over the life cycle of a product. Answer: TRUE 2. A time-series model uses a series of past data points to make the forecast. Answer: TRUE 3. Cycles and random variations are both components of time series. Answer: TRUE 4. One advantage of exponential smoothing is the limited amount of record keeping involved. Answer: TRUE 5. If a forecast is consistently greater
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Chapter 4 29. Annuity Present Values What is the value today of a 15-year annuity that pays $500 a year?The annuity’s first payment occurs at the end of year 6. The annual interest rate is 12 percentfor years 1 through 5‚ and 15 percent thereafter. (Ross‚ Stephen A.. Corporate Finance‚ 8th Edition. Irwin/McGraw-Hill‚ 112006. 4.8). 33. Growing Annuity Southern California Publishing Company is trying to decide whether to revise its popular textbook‚ Financial Psychoanalysis Made Simple. The company
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Chapter 4 15. For discrete compounding‚ to find the EAR‚ we use the equation: EAR = [1 + (APR / m)]m – 1 = .0719‚ or 7.19% EAR = [1 + (.07 / 4)]4 – 1 EAR = [1 + (.16 / 12)]12 – 1 = .1723‚ or 17.23% = .1163‚ or 11.63% EAR = [1 + (.11 / 365)]365 – 1 To find the EAR with continuous compounding‚ we use the equation: EAR = er – 1 EAR = e.12 – 1 = .1275‚ or 12.75% 23. Although the stock and bond accounts have different interest rates‚ we can draw one time line‚ but we need to remember to
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CHAPTER 1: MEANING‚ NATURE AND SCOPE OF PUBLIC FINANCE Def: Public Finance is the field of economics that studies government activities and the alternative means of financing government expenditures. Our focus in this course is on the microeconomic functions of government‚ the way government affects the allocation of resources and the distribution of income. THE LEGAL FRAMEWORK The Appropriation Act gives the Government of Belize the authority to collect revenue and incur expenditure within
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be sold. This process produces lots of waste water‚ which poisonous properties‚ which is being dumped into nearby streams‚ which then flow onto the land of downstream ranches‚ severely damaging the land. Discuss this problem using the tools of public finance and propose two solutions‚ one involving taxes and the other involving property rights. In Montana‚ there are some large deposits of water containing dissolved methane (fossil fuel). It is possible to pump this water out of the ground and release
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Infancy: Socioemotional Development I. | Attachment: The Basic Life Bond | | | Define attachment. bond between caregiver and child (or 2 people) | | | What time period categorizes toddlerhood? (1-2 yrs. old) | | | Contrast Watson’s and Bowlby’s views on attachment * John Watson: warned about the danger of too much mother love. Wants babies to be cared for by many different people * John Bowlby: "no such thing as too much motherly love" | | | What did Lorenz
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2008 Public finance Public finance is known as public sector economics or public economics focus on the taxing and spending activities of government and their influence on the allocation of resources and distribution of income. Public finance is the study of the role of the government in the economy. It is the branch of economics which evaluate the government revenue and government expenditure of the public authorities and the modification of one or the other to achieve desirable effects and
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Instructor Shabnam Mousavi Contact Information Phone Number: (410)234-9450 E-mail Address: shabnam@jhu.edu Office Hours Monday/Thursday 10am-noon Required Text and Learning Materials (1) Berk‚ J. and P. DeMarzo. 2007. Corporate Finance. 2nd Edition. Pearson‚ Addison-Wesley with MyLab access. The ISBN is 0-13-295-040-5. (2) Lecture Notes. The lecture notes will be posted weekly on Blackboard‚ before class. (3) MyFinanceLab: All homework and quizzes are posted on MyFinanceLab
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