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Schooling choice under perfect information. Suppose that an individual is deciding whether or not to

complete high school. If she leaves school after only 11 years, she will earn $13,000 today (period 0) and

$16,000 tomorrow (period 1). On the other hand, if she completes high school, or leaves school after 12

years, she will earn $30,000 tomorrow.

a. Suppose that she has access to credit markets. If the interest rate is 3 percent:

i. What is the present value of the wage benefit of education in the second period?

ii. What is the opportunity cost of staying enrolled in school?

iii. What is her optimal level of schooling?

b. Suppose now that she does not have access to credit markets, and her discount rate is 10

percent.

i. What is her marginal rate of return to schooling?

ii. What is her optimal level of schooling? [Hint: use discount rate in calculation as you

would use the interest rate when there is access to credit markets.]

iii. If her discount rate were 6 percent instead of 10 percent, would she be more patient or

less patient? Explain.

c. Compulsory schooling laws establish the ages at which children must be enrolled in school.

Suppose that our individual lives in a state where she can’t leave school until she reaches age 18.

i. Assuming that she has no access to credit markets, do you think that such a policy affect

her decision about completing high school? Explain.

ii. Assume once again that she can borrow. Does such a policy affect her educational choice?

Explain.

iii. Compulsory schooling laws force some people to invest more in education than they

otherwise would. Why might the state pursue such a policy?

Signaling. Jane and Catrina are both deciding whether to complete college. Catrina likes school, andhas the cost function C (S)Catrina = 25,000S , but Jane thinks that schooling is painful and has the costfunction C (S) Jane = 30,000S , where S represents years of college. Jane and Catrina will eventually beemployed at the same firm, which cannot observe productivity.a. Given the assumptions of the signaling model, which individual (Jane or Catrina) is higherproductivity?b. Suppose that this firm offered everyone, regardless of schooling, earnings equal to $500,000 (inpresent value).2i. How many years of college will Jane choose to get? How many years of college willCatrina decide to get?ii. Is this a pooling or separating equilibrium? Explain.c. Now suppose that this firm offers employees with at least 4 years of college ( S ≥ 4 ) earningsequal to $600,000 (in present value) and employees with less than 4 years of college ( S < 4 )earnings equal to $400,000 (in present value).i. How many years of college will Jane choose to get? How many years of college willCatrina decide to get?ii. Is this a pooling or separating equilibrium? Explain.d. Now suppose that this firm offers employees with at least a professional degree ( S ≥ 7 ) earningsequal to $600,000 (in present value) and employees with less than a professional degree ( S < 7 )earnings equal to $400,000 (in present value).i. How many years of college will Jane choose to get? How many years of college willCatrina decide to get?ii. Is this a pooling or separating equilibrium? Explain.

 

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Introduction

Introduction must capture a thesis statement. A thesis statement is one sentence that sets out the tasks you will complete in the body of the paper. The statement should have the general format such as “In this paper, I provide an analysis of [specific current event or situation] by: summarizing the facts; stating the key violent crime, and critically considering potential arguments using concepts and theories.

Facts Summary

Provide a brief summary of the facts of a current cybercrime case using neutral/unbiased language. Facts should include specific information about the event, i.e. specific date(s), name(s), location(s), behavior(s), etc. This information should come from an article or news medium (The New York Times or Washington Post, CNN, BBC, Reuters, UN News Wire etc). If you are including facts on the same current event from other sources, you must include the references in the facts section to demonstrate your reliance on objective sources.

Conceptual Framework or Analysis 

Provide an analysis of the situation using at least three theories of cybercrime. Framing the analysis using a compare/contrast approach is particularly valuable here. In addition, consider the guidelines below if applicable to your article or case study 

  1. Stimulate your conceptual and theoretical imagination.
  2. What theories best explain the case?

Concluding Remarks 

Concluding remarks: Which policy action or response to the cybercrime do you think is superior and why? Do you see any limitations?

References & Grammar

References must be presented according to APA format. Resources are available online or at The Writing Center.

Scoring is as follows (out of a possible 15 points):

  1. Title Page (1 points)
  2. Introduction (3 points)
  3. Facts Summary (3 points) 
  4. Conceptual / Theoretical Framework (4 points)
  5. Concluding Remarks (2 points) 
  6. Reference and Grammar (2 points) 

References you can look up theories from: Digital Crime and Digital Terrorism ISBN: 0133458946

 

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Lana is a fourteen-year-old middle school student who spends her free time playing the piano, watching TV, hanging out with friends, and using the computer. Her BMI is 30 and her mother reports that she has been overweight for most of her life. Lana does not like waking up in the morning, so she is usually running out the door to catch the bus and skips breakfast. For lunch, she grabs something from the school cafeteria such as nachos, chicken nuggets, or a walking taco. After school she snacks on potato chips or popcorn with butter. Dinners are eaten at home, but due to the fact that Lana’s single mother is pressed for time, they often consist of convenient frozen foods or take-out from a local fast-food restaurant. She often has ice cream as a snack in the evening. Lana is not happy with her weight and has tried dieting. Lately, she has been looking on the Internet for information about having surgery to lose weight.

What recommendations would you make to Lana about:

 

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.)On January 1, 2011, John Doe Enterprises (JDE) acquired a 55% interest in Bubba Manufacturing, Inc. (BMI). JDE paid for the transaction with $3 million cash and 500,000 shares of JDE common stock (par value $1.00 per share). At the time of the acquisition, BMI’s book value was $16,970,000.On January 1, JDE stock had a market value of $14.90 per share and there was no control premium in this transaction. Any consideration transferred over book value is assigned to goodwill. BMI had the following balances on January 1, 2011.For internal reporting purposes, JDE employed the equity method to account for this investment.A.

 

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