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(a) Explain the difference between purely private and public goods and discuss how it applies to environmental problems faced by developing countries.
(b) What are the implications of the free-rider problem for allocation of a public good?
Suppose that the economy price level is 100, the quantity demanded of Real GDP in short-run is $4,000 billion and quantity supplied is $4,000 billion. find the output gap in percentage points?
Assuming the velocity of money is constant, nominal money supply is growing at 12 percent a year and real incomes are growing at 4 percent a year: What is the inflation rate in this economy? What would happen to the inflation rate if real incomes wer..
Select at least five (5) economic concepts covered in the first four weeks' readings, and discuss the primary manner in which these concepts impact the world of health care economics. Some examples of selected concepts are health demand and supply..
Suppose that Fred's probability of illness is 0.25. What is the actuarially fair price of health insurance for Fred with a zero coinsurance rate?
What are the market equilibrium price and quantity? What is the effect of a price ceiling of 16? What is the effect of a price floor of 24? What would happen (compared to 3a above) to the market equilibrium price and quantity, to the demand curve, an..
What is the Standard Deviation of the sampling distribution?
Why is it difficult to analyze the welfare implications of growth in the neoclassical model? What proxy is often used to reach a conclusion about the effects of growth? What leads to the conclusion that, if welfare is to improve with growth in the la..
Firms like McDonald's and Wendy's sell hamburgers, salads, and other products that are differentiated in nature. Given their current menus, explain what level of economic profit these firms can expect to make in the long run? What strategies could th..
How to get a single profit maximizing price when we cannot figure out how much customers willing to pay.
What is the Herfindahl-Hirschman index in this market? (Hints: 1) Use the number of admissions as a base for the calculation;
An example where a bundle x is (strictly) preferred to bundle y when preferences satisfy strong monotonicity, but x is not necessarily preferred to y.
Why are market structures so important? What policies make sense to you with regard to the U.S. wheat or corn markets? What about the automobile or airplane markets? Why do you (we hope!) choose different policies for each? What about new inventions,..
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