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A paint firm has just announced that it will be building a new plant in a small town that is currently experiencing a high level of unemployment. The new plant will create 500 new jobs in the area and will occupy unused land at the edge of town. The plant will also dump some harmful chemicals into the town's river. From an economic standpoint this dumping of chemicals
a. creates a positive externality. b. is unimportant since the firm is reducing the unemployment in the region. c. is the production of a public good. d. creates a negative externality.
bank prime loan rate imports of goods amp per capita income.briefly explain why the three variables are appropriate
Suppose there is a single consumer with U = Sl, where S is steaks and l is leisure time. Assume that the government can observe the leisure that is consumed. It taxes leisure consumed at t per unit of leisure and returns the collected ‘revenue’ to th..
Explain how a decrease in a tax rate might decrease revenue from the tax in the short run but increase the tax revenue in the long run. Give an example of a tax that might have this property. Explain.
Alinsky, Rules for Radicals, pp. Oct. Models of Power CASE: What a Star-What a Jerk (Classpak #1). Case questions: - What, if anything, is Andys problem? - What, if anything, should Jane do about Andy?
what is the return on operating capital that BIDDLE is currently deriving? Then if J.P. Morgan chase is loaning operating capital to the company at 7.5%, what is the cost of capital for the BIDDLE Company and is the company covering opportunity c..
Let’s go back to better times for Radamel, before his injury. Remember he had a monthly allowance of $200 and an hourly wage of $50. Suppose that Radamel’s utility function is U=C^.5L. assume that the total “awake” hours are 110 per week. How many ho..
I have recently been involved in a debate stemming from figures mentioned in this blog post (the blogger was advocated by Occupy London's facebook page and verifying the level of "over-sensationalism" portrayed in the post would make or break my rela..
The money multiplier equals 1/R, where R represents the quantity of reserves in the economy. If the money multiplier is 2 and the Fed buys $50,000 worth of bonds, what happens to the money supply? What does the Fed auction at the Term-Auction ..
Where does this short-run aggregate supply curve intersect the long-run aggregate supply curve that you drew? Just need an explanation of what it woudl look like?
How do changes in disposable income affect government purchases and the government purchase function? How do changes in net taxes affect the consumption function?
Why do some companies spend a lot of money for advertising? What does it say about a the market structure the company is in when they advertise a lot or a little?
As a currency appreciates:
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