A couple is considering moving to Tokyo from New York. Casey's cost of moving is S60,000, and Ashley's cost of moving is $90,000. Their moving costs are high since they must learn a new language. The present value of Casey's lifetime camings is $500,000 in New York, and $550,000 in Tokyo (after converting earnings from yen into dollars). The present value of Ashley's lifetime earnings is $200,000 in New York, and $1,000,000 in Tokyo. Assume they make decisions as a collective housechold where each member's earnings are weighted equally. Will they move as a couple? Is one of them a tied mover or a tied stayer?

A couple is considering moving to Tokyo from New York. Casey's cost of moving is S60,000, and Ashley's cost of moving is $90,000. Their moving costs are high since they must learn a new language. The present value of Casey's lifetime camings is $500,000 in New York, and $550,000 in Tokyo (after converting earnings from yen into dollars). The present value of Ashley's lifetime earnings is $200,000 in New York, and $1,000,000 in Tokyo. Assume they make decisions as a collective housechold where each member's earnings are weighted equally. Will they move as a couple? Is one of them a tied mover or a tied stayer?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter31: Capital Markets

Section: Chapter Questions

Problem 2E

See similar textbooks

Similar questions

Suppose y = 4w7/(x5z3). Suppose that w increases 5%, x increases 1% , and z increases 1% . By what percent should y increase? Your answer should be an integer with a % sign assumed to follow (e.g., if you wish to say 48 percent, write 48). The percent increase in y should be approximately.
COVID-19 has undoubtedly been a defining time in our generation's history, with effects on global economies comparable in some instances to what was experienced during the Great Depression of the 1930s. The pandemic has also recalled the economic shockwaves of the Global Financial Crisis of 2008/09. One can argue that this episode is like none seen before because it hasn’t emanated from economic factors. The pandemic is also having a broad spectrum of effects on economies and exchange rates globally. 4.2. Discuss the main drivers of the performance of emerging market currencies since March 2020.
Calculate the net present value in year 0, of the next series of payments. Suppose that i = 10% per year.
Explain 16 correctly
A farmer selling eggs at 50.92 pesos a dozen gains 20%. If he sells the eggs at the same price after the costs of the eggs rises by 0.107, how much will be his new gain in percent?
Assume that GBP|USD = 2.00 (rate chosen for math ease). After the passage of a significant tax increase in the United States, the United States stock market is expected to drop significantly over the next month while the British stock market is expected to show steady growth. As a result which of following is most likely in a graph of the currency market with GBP per USD (original equilibrium is USD|GPB = 0.50) on the vertical axis (quantity of USD on horizontal axis)? Drawing a diagram would be useful. A. The supply curve would shift left and the new price would be greater than 0.50. B. The supply curve would shift right and the new price would be greater than 0.50. C. The supply curve would shift left and the new price would be less than 0.50. D. The supply curve would shift right and the new price would be less than 0.50.
Consider Snackistan, a hypothetical country that produces only burgers. In 2017, a burger is priced at $4.00. Complete the first row of the table with the quantity of burgers that can be bought with $700. Hint: In this problem, assume it is not possible to buy a fraction of a burger, and always round down to the nearest whole burger. For example, if your calculations result in 1.5 burgers, the answer should be 1 burger. Year Price of a Burger (dollars) Burgers Bought with $700 (Quanity) 2017 4.00 2018 Suppose the government of Snackistan cannot raise sufficient tax revenue to pay its debts. In order to meet its debt obligations, the government prints money. As a result, the money supply rises by 20% by 2018. Assuming monetary neutrality holds, complete the second row of the table with the new price of a burger and the new quantity of burgers that can be bought with $700 in 2018.
a. There are two nation, UK and RSA and the combined capital stock is OA. b. In isolation, UK invests OA of capital for a yield of OC. The TP is OFGA and RSA invests O*A of capital for a yield of O*H. The TP is and the combined capital stock is OA. b. In isolation, UK invests 0A of capital for a yield of OC. The TP is OFGA and RSA invests O*A of capital for a yield of O*H. The TP is O*JMA © 87% 4 C. Since UK is capital abundant, the return on capital is low, Capital will move to where it can earn a higher return. In this case, to SA. Therefore, AB of capital moves from the UK to RSA d. With the transfer of capital to RSA, the total return on capital in UK increases from OCGA to ONRA total return on capital in RSA falls from O*HMA to O*TRA
macroeconomics Q2: Three students have each saved $1,000. Each has an investment opportunity in which he or she can invest up to $2,000. Here are the rates of return on the students’ investment projects: Harry 5 percent Ron 8 percent Hermione 20 percent If borrowing and lending is prohibited, so each student uses only his or her saving to finance his or her own investment project, how much will each student have a year later when the project pays its return? Now suppose their school opens up a market for loanable funds in which students can borrow and lend among themselves at an interest rate r. What would determine whether a student would choose to be a borrower or lender in this market? Among these three students, what would be the quantity of loanable funds supplied and quantity demanded at an interest rate of 7 percent? At 10 percent? At what interest rate would the loanable funds market among these three students be in equilibrium? At this interest rate, which…
No plagrisum and correct answer please. Please do all four parts..Thank You advance Consider two commodities viz. smartphones and travel bags and two countries viz. Bangladesh and South Korea. Suppose the production of both the commodities is fully mechanized using electricity as an input in both the countries. The amount of electricity hours needed to produce one unit of each commodity is a follows: Hours per unit Smart Phones Travel Bags Bangladesh 6 1 South Korea 1 3 The total units of electricity available in Bangladesh is 1000 units while that in South Korea is 2000 units. i. Calculate the opportunity cost of each commodity for each country and explain which country has comparative advantage in production of smartphones ii. If each country decides to distribute its electricity supply in production of each good in equal proportions, what will be the total supply of smartphones and travel bags? iii. If each country decides to allocate its electricity fully in the…
3. Consider a world in which production of a good or service consists of a number of definitive tasks, which must all be performed correctly for the product to have positive value. Each task is filled by a single worker i whose skill level qirepresents the probability the worker performs her task correctly. Mathematically, if there are n tasks in the production of a good, and average production per worker with one unit of capital is 1 when all tasks are performed correctly, the production technology can be represented as: A) Give an example of an industry for which this might be a good model of production. What does this production function imply about the tradeoff between quality and quantity of labor in a given task? In this, how does it differ from a Cobb Douglas production function? B) Find the marginal product of increasing the skill of the ith worker. Suppose now there were two firms in the same industry that will bid for workers, and can pay them differentially according to…
Consider Snackistan, a hypothetical country that produces only burgers. In 2016, a burger is priced at $4.00. Complete the first row of the table with the quantity of burgers that can be bought with $900. Hint: In this problem, assume it is not possible to buy a fraction of a burger, and always round down to the nearest whole burger. For example, if your calculations result in 1.5 burgers, the answer should be 1 burger. Year Price of a Burger (Dollars) Burgers Bought with $900 (Quantity) 2016 4.00 2017 Suppose the government of Snackistan cannot raise sufficient tax revenue to pay its debts. In order to meet its debt obligations, the government prints money. As a result, the money supply rises by 20% by 2017. Assuming monetary neutrality holds, complete the second row of the table with the new price of a burger and the new quantity of burgers that can be bought with $900 in 2017. The impact of the government's decision to raise…