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Questions: "Consider the following three schemes for the overall restriction of gasoline consumption, assuming that the amount of gasoline available on the market will be the same for each case.[Note: in all cases there is no restriction on price]
a. Rationing of gasoline consumption (C coupons per driver for G gallons per coupon) with no trading of coupons
b. Coupons like a. but with free trading of coupons allowed.
c. Quota restrictions on gasoline production (quotas not tradable]; free market for gasoline, no rationing.
Compare and contrast the market prices that will emerge under each of these schemes, drawing graphs when possible to illustrate. Can you be sure that b. is better than a.? Explain. What, if any, is the difference between b. and c.? Explain.
For which two bonds would you expect to generally pay the higher interest rate, a U.S. government bond or a municipal bond with the same term and issued by a creditworthy municipality and explain why?
Following the collapse of systemically important banks in 2008, were the G-20 group of countries right in early 2009 to coordinate their fiscal policies and increase government spending? How would you distinguish the effect of such a policy on (i) co..
What does the liquidity mean for a business?
What is Brand Equity and what is its relevance to the telecommunications industry?
What is a hypothesis? Also, what is the function of a hypothesis? What different kinds of reasoning a hypothesis testing involve?
Collusion never results in benefits for the participants. Its overriding goal is to enhance competition and thereby increase profits. Collusion is legal in the U S. The greater the number of firms the less difficult it is to maintain a collusion. Col..
For the closed-economy, one-period model, suppose that U(C,I) = In C + βl, and F(K,N)= ZK^(a)N^(1-a), where β>0 and 0
1. What is the equilibrium price if demand is reduced by half?
Higher unemployment caused by the recession and higher gasoline prices have contributed to a substantial reduction during 2008 in the number of vehicles on roads, bridges, and in tunnels. If the marginal cost of letting another vehicle cross a bridge..
Subject: EconomicsPlease briefly explain in your own words.
The National Collegiate Athletic Association (NCAA) does not allow its members to play against schools that the NCAA does not certify. Is this a good idea?
To which category of U.S. GDP expenditure does each of the following correspond? Using any relevant information below, calculate GDP via the expenditure approach. Nominal GDP in Nowhereland in 2002 and 2003 increased from $4 trillion to $4.8 trillion..
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