Reference no: EM131328084
Assignment
What are the two distinguishing properties of a public good? Explain each in one or two sentences. Give an example of a public good different from any of the examples in your text or my notes.
What is the "free rider" problem and how is it related to the distinctive properties of public goods? Public goods are provided for free use for the individuals who indirectly pay for it. Free riders get the benefit of a public good without having to pay for it.
"We should auction off our national parks and forests to the highest private sector bidders and trust that competition and the profit motive will lead them to allocate these resources to the highest valued uses." Agree or disagree with this statement and explain your answer carefully.
When calculating the total social marginal benefit of providing an additional unit of a pure public good, why is correct to simply add up the marginal benefit to each household of that public good?
5) In the diagram below, assume that there are two classes of citizens, the "hawks and the "doves," with different preferences for national defense spending. Assume each group has 50 million households and the lines WTPD and WTPH give the aggregate marginal willingness-to -pay for national defense for each group. Assume that MC measures the marginal cost of reducing the probability that an enemy could land a missile on U.S. soil or otherwise threaten the lives of US non-combatants by chemical attack or conventional warfare.
a) Draw the social marginal benefit curve for society as a whole.
b) Determine the theoretical optimum level of national defense to provide.
c) In theory, what payment scheme would generate general voter satisfaction with this level of National defense spending?
d) Why in practice will no one reveal their preference if the payment scheme in (c) is adopted.
e) Why will both hawks and doves be unhappy with the level of national defense chosen if defense spending is financed by an income tax, even if the theoretical optimum amount of national defense is chosen?
In the ‘Classico' Region within Tuscany, all producers of Chianti wine must submit their wines to a government inspection process which certifies that only grapes grown in the Classico region have been used in the wine. All wines which pass this test have a label fixed around the bottle neck (usually with a black rooster on it) guaranteeing the geographic origin of the grapes used in the wine. (D.O.C.G.). Discuss this economic reason for this situation. Who benefits from this labeling requirement for wines grown in this region?
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Combined portfolio to accomplish your goal
: ABDCo has a beta of 1.05 and Cloud9 has a beta of 0.35. If you want a portfolio with a 0.5 beta, what is the weighting of ABDCo in the combined portfolio to accomplish your goal?
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Average real risk-free rate and real risk premium
: You’ve observed the following returns on Barnett Corporation’s stock over the past five years: –26.7 percent, 14.8 percent, 32.6 percent, 2.9 percent, and 21.9 percent. What was the average real risk-free rate over this time period? What was the aver..
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What was the arithmetic average return on the stock
: You’ve observed the following returns on Barnett Corporation’s stock over the past five years: –29.1 percent, 16.4 percent, 35.8 percent, 3.7 percent, and 22.7 percent. What was the variance of the returns over this period? What was the standard devi..
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Compute the percentage total return-dividend yield
: Suppose a stock had an initial price of $101 per share, paid a dividend of $3.20 per share during the year, and had an ending share price of $80.00. Compute the percentage total return. What was the capital gains yield? What was the dividend yield?
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Draw the social marginal benefit curve for society as whole
: Draw the social marginal benefit curve for society as a whole. Determine the theoretical optimum level of national defense to provide. Why in practice will no one reveal their preference if the payment scheme in (c) is adopted.
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Read the articles and analyze three assigned paintings
: Read Edgar Allan Poe's poem "The Raven". Listen to the assigned pieces of music (parts of Beethoven's Fifth and Ninth Symphony, 1st and 3rd movement of Moonlight Sonata, Chopin's Revolutionary Etude and Wagner's Ride of the Valkyries).
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Compute the product costs and gross margins
: Compute the product costs and gross margins (revenue less cost of goods sold) for the three products and total gross profit t for year 1.
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What are the ethical considerations of your decision
: What are the ethical considerations of your decision? What implications could this decision have? Describe how your decision was reached. How will this impact the efficiencies of your operation?
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Write a paper on 3d printers or robotics in medicine
: Write a paper on the topic "3d printers or robotics in medicine".- Perform Step 1, Step 2, components of Step 3, and begin the work of Step 4 as outlined on the Flowchart of the Research Process.
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