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Public Choice theorists have emphasized that there is a bias toward growth in government due to the "concentration of benefits" and the "diffusion of burdens" (or costs) from government spending. Some people, like Wilhelm Ropke, have argued that the "tension" in people roles as consumers and producers comes from the nature of the division of labor. Explain the logic of their analysis. Do you agree? Why? Is there any solution to the dilemma?
The first acre can produce 1000 bushels of wheat, the second acre 900, the third 800, and so on. How much revenue will each acre generate? what are the TR and MR for each acre?
Compute the value of the marginal propensity to save. Compute the amount of autonomous planned spending, Ap, given that the interest rate equals 5. Compute the equilibrium level of income, given that the interest rate equals 5.
particularly on the retail end where drug dealers sell the drug to consumers in the U.S. What would you predict would happen to the economic profits of the drug dealer? Suppose the family in South America form a cartel What is the result of the ca..
Why there is so much advertising in monopolistic competition and oligopoly? How does such advertising help consumers and promote efficiency?
Some economists have argued that if the government wishes to subsidize health care, it should instead provide predetermined sums of payments (based on the type of health care problems experienced) directly to patients, who then would be free to ch..
What is the relationship between economies of scale and a natural monopoly? What is simultaneous consumption and how does it affect economies of scale? What are network effects and how do they contribute to economies of scale?
Explain the nature of the deadweight losses that occur from a tariff. What is countervailing duty, why is it needed, and how does it work. What is the difference between a specific tariff and an ad valorem tariff.
When a household buys a new house, does that represent consumption, saving, or investment? What factors may influence a household when deciding between buying stocks, bonds, or a house?
What will be the immediate impact on wages in each of the regions in the short run (before any migration between the North and the South occurs)?
Increasing jet fuel values recently led most major United States airlines to raise fares by approximately 15%. Describe how this substantial increase in airfares would affect the following;
Determine if the benefits of free trade outweigh the drawbacks, and what could be done to address the drawbacks (if anything). State whether you believe fair trade is a fad or a trend. Provide support for your reasons.
Calculate the correlations between life expectancy and the two measures of GDP per person
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