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In which cases are the Coase theorem's assumptions are likely to be true? Explain.
a. My neighbor wants me to cut down an ugly shrub in my front yard. The ugly shrub imposes an external cost on him and on his property value.
b. A coal-fired electricity plant dumps its leftover hot water into the nearby lake, killing the fish. Thousands of homes line the banks of the lake.
q.auto company comprises small plant that produces speedometers exclusively. its yearly fixed expenses are 30000 and
Litigation is more likely to be effective than regulation at deterring a company's harmful (negligent) behavior if: The anticompetitive division of the Federal Trade Commission examines mergers to ensure that they do not create situations in which ab..
The following graph shows an increase in aggregate demand (AD) in a hypothetical country. Specifically, aggregate demand shifts to the right from AD1 to AD2, causing the quantity of output demanded to rise at all price levels. Complete the table by i..
U.S. structural inequality with regard to racial and ethnic minorities
determinants of supply and demand, graph the supply and demand curves and illustrate the resulting change in the equilibrium price and quantity.
Explain what negative externalities are, and why there may be a case for government intervention to address them. Describe some of the ways to correct the negative externalities and the pros and cons of each method. Provide real life examples.
Suppose GDP equals $200 million, consumption equals 140 million, government expenditure equals 20 million and has a budget deficit of 5 million. (Hint. suppose this is a closed economy, Y=I+C+G) Find investment and taxes. Find public saving and priva..
Notice on the spreadsheet, the amount of capital in the spreadsheet stays constant at 4 while the amount of labor varies from 0 to 30. Choose all that are correct. The constant amount of capital denotes that the spreadsheet represents short term prod..
Netflix is the largest online DVD rental service offering flat rate rental-by-mail and online streaming to customers in the United States. Currently, there are approximately 8 million subscribers. Suppose Netflix increases their average flat rate by ..
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semi-annual interest payment. The bond rate is 6.6% per year payable semi-annually. You plan to hold the bo..
Describe the effects of an increase in the tax on labor income.
Official unemployment rate statistics may
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