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a. Consider a competitive market supple and demand model. If there are no externalities, explain why economists describe the competitive equilibrium an efficient?
b. Suppose instead that all of the firms in this market vent an ozone reducing chemical into the atmosphere as a consequence of their production activities. Is this new outcome efficient? explain with a diagram
c. Do these firms have an incentive to reduce their pollution? Explain with diagram.
d. Modern economists suggest 2 solutions to the pollution problem above. Explain how a pollution tax (use diagram) and an emission permit trading scheme can both "solve" the problem of pollution.
This would obviouslyr equire more pilots, stewardesses, and others that facilitate theair-travel experience. However, suppose at the same time that several of the major airlines experienced a shortage of pilots dueto a strike.
Illustrate what is more important for them to monitor and target, inflation or interest rates.
Using the unbiased expectations theory, calculate the current (long-term) rates for one-, two-, three-, and four-year-maturity Treasury securities. Plot the resulting yield curve.
Illustrate what are the THREE tools the FED has at its disposal to manipulate or change the Money Supply and interest rates.
In the early 1980's, planners were examining alternate sites for a new London airport.The economic analysis included the value of structures that would need to be removed from various airport sites. At one potential site, the twelfth-century Norma..
Suppose a four sector economy C=200+0,65Yd calculate the values of MPC, MPM, MPT
a consumer lives three periods called the learning period the working period and the retirement period. her
Suppose government were to provide free daycare for children and assume this has no effect on the real wage w, taxes T, and dividend income π. Determine effect of the daycare program on consumption
Given that the economy raise by the banking system and creation of money through lending, if one market is down are we to suppose that these other firms that are facing increased demand will borrow enough to counter balance the amount
the company iie inc. is considering upgrading their distribution center dc and have received investment proposal from
The textbook provides three techniques that not-for-profit organizations use to deal with the free-rider problem. Create two additional techniques that these organizations can use to encourage contributions from consumers.
Use an AD-AS diagram (draw and scan or create on your computer) to show the short run and long run effects of using the policy you chose.
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