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https://www.youtube.com/watch?v=qZ4bFPkI39U&t=5s
1) Explain what is meant by negative externalities.
2) Describe how an over allocation of resources results when negative externalities costs are present.
3) How this can be corrected by government action.
Solve the following using the graph: NegativeExternalities.pdf Download NegativeExternalities.pdf
4) Calculate the cost borne to society at equilibrium at Point A?
5) From question 5, what is the cost borne to society after Government increases taxes by $0.50?
6) Start at equilibrium at Point A. What is the cost borne to society after Government increases taxes by $1.00?
7) From question 6, how much in terms of quantity must consumers demand less to eliminate the cost borne to society?
Calculate the approximate total tax revenue if all of the coal burned in the United States was burned under a $100/ton carbon dioxide tax. Do this (a) for one year at the present rate and (b) for the total U.S proved reserves. Assume 100% carbon for ..
In the long run, if the Bank of Canada decreases the rate at which it increases the money supply, what will happen to inflation and unemployment?
The current jackpot is 730 million money units. What is the probability of correctly guessing all 6 values with just one ticket?
A consumer buys only two goods, x1 and x2. Initially, the prices are (p1; p2) = (4; 3) and the consumer chooses (x1; x2) = (3; 4). Later, the prices change to (
What is the level of output in this country in this year? And what about the level of investment?
The McNight Company is a major producer of steel. Management estimates that the demand for the company’s steel is given by the equation Qs = 5,000 – 1,000Ps + 0.1I + 100Pa where Qs is steel demand in thousands of tons per year, How much steel will be..
Over what range of wealth is this function potentially appropriate to analyze your financial choices under risk? Over this range of wealth, what is your attitude toward risk? What is your Arrow-Pratt measure of risk attitude?
What are the strengths and laws of a program like Bill Clinton’s (proposed) “Hope Scholarships,” in which students take out a loan and pay it back based on future income? (I.e. you take a loan out for $40,000 and promise to pay 10% of your salary for..
Based on the Diamond-Dybvig (1983) model. Specifically, there are three periods, denoted t ,,t .t = 012, a single consumption good, and an illiquid investment o
This unit has talked largely about economies of scale at the plant or unit level. What do you see as the difference between the unit level economies of scale and the firm multiple plants, movie theaters, restaurants, etc. Is there a clear distinction..
Calculate the expected annualized compound rate of return over the five years for each bond. Which bond offers the higher expected compound rate of return?
In the 1980's land prices in Japan surged upward in a "speculative bubble." Then land prices fell for 11 sytaright years between 1990 and 2001. What can we safely assume happened to land rent in Japan over those 11 years? Use graphical analysis to il..
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