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Suppose the costs of an environmental pollution-control program are expected to be equal to $1000 per year, and that benefits will be $600 for 20 years, then $2500 thereafter. What would be the net benefits of this program if the discount rate is 1%, 5% and 10%?
Foreign exchange markets make it possible for trade to be enacted between countries without lengthy negotiations on trade terms. The exchange rate mechanism is a relatively stable process whereby different currencies can be exchanged in an orderly ma..
The federal debt keeps rising every year and has changed from a moral responsibility to a tool used in economic policy. Government spending is used for everything from Medicare and Medicaid to buying books for underprivileged schools.
Each firm in a cartel has an incentive to chisel because market price exceeds, Under the cartel model, each firm produces where
Consider the following production function: f(k,l) = k^1/3 + l^1/3. Does an increase in the tax increase the cost linearly? Why or why not? HINT: Consider the partial derivative of the cost function with respect to t.
A country will likely experience an increase in poverty if
Illustrate what is expected interest rate that will be charged by a bank that cannot exactly distinguish between two types but knows probabilities of each type.
To find and explain the Nash equilibria of a widespread form game can I use the equivalent normal form game to do that.
q1. in our study of the problem of measurement error in the dependent variable we learn that one solution is to use
The following is intended to explore what kinds of cross-price demand relationships are logically possible in a two-good model with exogenous income.
Explain how much tax revenue does this tax create. Illustrate what proportion of the tax is borne by consumers.
Suppose a manufacturer produces a product that it sells to retailers who sell it to consumers. Consumer demand for the product is given by inverse demand curve: P = 100 – Q. The marginal cost of production for the manufacturer is 20.
It is sometimes suggested that the government should actively pursue an industrial policy. Explain what this means and discuss the advantages and the disadvantages of such a policy. 2. Suggest four policies to promote growth. How is it related to the..
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