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Suppose the city of Washington is committed to raising $250 million for a new arena. The mayor suggests putting a tax on taxi rides since out-of-towners disproportionately use taxis. Evaluate the economics of this policy decision. Carefully explain why the tax on taxi rides is a good idea or why the tax is a bad idea.
Country Z is a developing country that is facing problems of deforestation.
A friend of yours suggests a get-rich-quick scheme: borrow from the nation with the lower nominal interest rate, invest in the nation with the higher nominal interest rate, and profit from the interest-rate differential. Which of the following statem..
When we say utility is the determinant of exchange value, we mean that
Illustrate the effects of the following on the money market diagram. Show what happens to the interest rate in each case.
Why is depreciation of capital good a cost of society. In illustrate what ways does a person's health depreciate. Why might older people's health care expenditures increase in Grossman model even though their desired health stocks may be lower.
Two important concepts that our chapter on Foreign policy discusses are the values that drive foreign policy and the specific instruments that are utilized to carry out foreign policy. In the post-9/11 and Afghanistan/Iraq Conflicts era, do you think..
Your company generated $3.7 million revenue in 2013. Annual costs/depreciation are as follows: cost of goods sold that year was $800,000; salaries and wages that were paid were $1,000,000; advertising costs were $30,000; depreciation was $50,000; oth..
An industry has two firms, each of which produces output at a constant unit cost of $10 per unit. The demand function for the industry is q(p) = 1,000,000/p. Give the best-response function for each firm. What is the Cournot equilibrium price for thi..
Elucidate why it is often claimed that hospitals compete for doctors rather than patients. What are some of the implications of this phenomenon.
Assume a company has $200 in fixed costs, marginal costs are $10, and the company produces 100 units per year. How low can the price go before it is preferred to shut down? Answer the question for the short run and for the long run
With the passage of the Affordable Care Act the U.S. government requires that everyone have some form of health insurance. One of the provisions of the law is that firms with more than 50 full-time workers must provide health insurance to those worke..
Which of the following would most likely serve as an example of a monopoly?
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