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Discuss how the Coase Theorem provides an alternative to a government regulation and provision of services. How is the definition of private property a critical part of this analysis? Please explain in detail.
To avoid the problem of double marginalization
Suppose a consumer's utility function is given by U(X,Y) = X*Y. Also, the consumer has $288 to spend, and the price of X, PX=16, and the price of Y, PY = 1. How much X and Y should the consumer purchase in order to maximize her utility? How much tota..
Is democratic government and equal rights are necessarily related, in the way Lincoln's opening quote implies."As I would not be a slave, so I would not be a master. This expresses my idea of democracy. Whatever differs from this, to the extent of th..
Although studies continue to show smoking leads to significant health problems, 20% of adults in the United States smoke. Consider a group of 350 adults. What is the probability that from 55 to 70 smoke? What is the probability that 70 or more smoke?
Explain how scarcity affects the following decision-makers: The president of the United States A business executive A city manager The mother of a baby.
J. M. Keynes wrote.” If the Treasury were to fill old bottles with banknotes, Bury them in disused coal mines, and leave it to private enterprise to dig the notes up again, there need be no more unemployment and the real income of the community would..
A hot dog vendor faces a daily demand curve of Q=1800-4p, where P is the price of a hot dog and Q is the number of hot dogs purchased each day. If the vendor has been selling 300 hot dogs each day, how much revenue has he been collecting? What is the..
Please describe the process by which banks use our deposits to create money. Be sure to work the reserve requirement into your posts, and explain the deposit expansion process, and how the reserve requirement limits the amount of money. Do we have mo..
Which of the following examples is an adverse-selection problem and which is an incentive problem? Explain why. In each case, give one method that the restaurant might use to reduce the problem. A restaurant decides to offer an all-you-can-eat buffet..
The Gorgonzolan central bank puts 5,000,000 guilders into circulation and each of the commercial banks holds 20% of deposits. Assume the public holds no currency. Initially all of the money is deposited into First National Bank. Show the T-account fo..
Use the Taylor rule to calculate the target for the federal funds rate for October 2012, using the following information: equilibrium real federal funds rate of 2%, target inflation rate of 2%, current inflation rate of 1.2%, and an output gap of 5.9..
If the consumption function lies below the 45 degree line dissaving is occuring. If the AE curve lies below the 45 degree line there is a inflation at full employment. Output is increased to get rid of an inflationary gap. The aggregate demand curve ..
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