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The dominant source of resources for governments at the moment is government debt. In the US, total federal debt equaled more than 135% of GDP in early 2020. That means that if the federal government confiscated the economy's entire amount of output and used it to pay for their outstanding borrowing, they would still fall far short of paying off their IOUs. Note that this only includes federal debt - it does not include state-level or city-level debt. What do you think this implies for future tax revenues (potentially including seignorage taxes)? How might the burden of this debt be distributed across people now and into the future?
Should governments subsidize education? Should governmentsoperate our schools or should schools be run by private businesses?
Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1.00 per poster. What is her AFC per poster if she prints 10,000 posters? What is her ATC per poster if she prints 1,000..
Consider a corrupt provincial government in which each housing inspector examines two newly built structures each week. All the builders in the province are unethical and want to increase their profits by using substandard construction materials, but..
Sammy has a drone that he values at? $1,500. Dean values the same drone at? $2,000. Sammy decides to sell the drone to Dean for? $1,800. What is the total cooperative surplus gained as a result of this? trade?
What price should he charge per ticket? (Note: Use the arc elasticity formula.) Is this a good strategy? What would be your recommendation?
Elucidate how you would address each of the main problems in the organization.
If it cost Wardco $10million to treat the water and the value of mined products to customers is $8million, requiring water treatment would kill the project. Should Wardco be required to treat the water in this case?
What are the factors that contribute to why certain countries have a larger gender pay gap than others?
The labor market for nurses though cyclical often has been characterized by prolonged periods of apparent shortages. One potential explanation for the phenomenon is the monopsony power of hospitals as employers of nurses. Discuss why monopsony may (o..
If the demand increases for a product like gasoline and there is no change in the supply of gasoline at the same time, then using SUPPLY and DEMAND CURVES, the new equilibrium price might go up or stay the same, or be lowered.
Use the following information for the next 10 questions. You should draw a graph that depicts the situation below and use your picture to answer the questions. Assume that wages and prices are sticky and that we start at a long run equilibrium. Assum..
Facial tissue is a rival good because:
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