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Decide whether each statement is true, false, or uncertain, and explain why. Explanations may take the form of words, graphs, math, or some combination of the three.
1. Much of the recent policy discussion surrounding opioid use has been about its serious consumption externalities, which includes health and productivity losses, economic-compulsive crime, and accidental overdose deaths, the costs of which are borne in part by taxpayers, employers, and families. Based on the evidence you read for class, policymakers should address these concerns by implementing more supply control policies that prevent drug companies from producing the major brand-name opioids like OxyContin and Vicodin.
2. An alternative way to address some of the consumption externalities of opioids is to make harm-reduction products more accessible. For example, Naloxone is a drug that can reverse the effects of an opioid overdose if it is given quickly after the original drug consumption. A supply-and-demand framework suggests that making Naloxone more readily available might not always be a good way to reduce social harm from opioid use.
Suppose that during the past year, the price of a laptop computer fell from $2,650 to $2,430. During the same time period, consumer sales increased from 495,000 to 664,000 laptops. Calculate the elasticity of demand between these two price–quantity c..
What are the security concerns with using the Cloud? Please be thorough in your responses.
Suppose that the price of Hershey’s chocolate increases. What would happen to equilibrium price and quantity in the market for Godiva chocolate? Be able to draw the graph that illustrates your answer.
Suppose that the labor market is competitive and there are a total of 1,000 black workers and 1,000 white workers (who each supply their labor in elastically). Both black and white workers are equally productive, having constant individual dollar pro..
1. Why does "substitution bias" arise if the inflation rate is calculated based on a fixed basket of goods?
Le Crueset is a French restaurant that recently increased the average price of its meals by 4%. As a result, the number of customers dropped by 3%. Based on this information, what is the price elasticity of demand for meals at Le Crueset? How will th..
Identify and discuss three (3) externalities, which can either be positive or negative. Conclude why an externality might exist in the situation that you described, and determine the solutions to mitigate these particular externalities.
Can a monopolistically competitive firm producing a good with lots of very close substitutes earn large positive profits in the long run? Please explain.
You own a 20 year semi annual 8% coupon bond with a face value of $1,000. The current yield of the bond is 8.2%. What is the bond's yield to maturity?
Consider a state debating how to finance emergency road and bridge improvements. Among the possibilities are increased fees on driver’s licenses, a personal property tax on motor vehicles, a tax on automobile parts (including tires), and a higher tax..
A presidential candidate has decided to enter primaries in those states in which at least 20% of voters support her. Random samples of 200 voters were taken in each of a number of states. In New Hampshire, 33 voters supported the candidate. Test at a..
"The Neoclassical/Neoliberal Dogma," and chapter 6, "A Radical Economic Perspective," from Naming the System: Inequality and Work in the Global Economy by Michael D. Yates. Comparing the key arguments made by neoclassical and radical economists. T..
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