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How could you solve the examples below of externalities to attain market efficiency?
Negative externality is detrimental to those affected while positive externality is beneficial to the affected parties. For example a factory that is releasing untreated effluents into water source will shift the cost of cleaning the contaminated environment to the society. Example of positive externality is a person who went to education system. Not only will the person enjoy the benefits such as better job opportunities, higher productivity, and higher income but also the society will enjoy the spill over benefits. An educated will less likely engage in criminal activities which is a positive benefit to the society.
Elucidate how an economist could utilize the slope of the yield curve to analyze the probability that a recession will occur and why the spread may matter.
When a leading developing country defaults on its loan to foreigners, discuss (with the aid of loanable funds market diagram) why interest rates will rise on bonds issued by many other developing countries.
Suppose that in our economy represented by sectors A and T as described in class (A is capital intensive and T is labor intensive; both produce under constant returns to scale), there is a positive production externality (for instance knowledge spill..
Which of the following is a condition for profit-maximization in a perfectly competitive firm? A perfectly competitive firm should shut down in the short run whenever, at the best possible output _____. A technology advance in a perfectly competitive..
Define and describe Insolvency Risk. Describe the two best protections against insolvency at a Financial Institution. Describe a situation where Insolvency Risk could be caused 1) by Liquidity Risk; 2) by Credit Risk
What is the percent of clear lumber from each of the three suppliers? What is the percent of lumber from each of the three supplier.
Explain why an Analyst working for the Anti-Trust Division of the Justice Dept. would benefit from understanding cross elasticity of demand when evaluating the proposed merger of Coca Cola Company and Pepsi.
In the short-run, if a firm has decreasing returns, does it have increasing, constant, or decreasing marginal cost? Explain. What about if it has constant returns? Increasing returns? Explain.
Consider a simple one-period, closed economy model where the representative consumer has utility function u(C, l) and h available hours to divide between work and leisure. The representative firm has technology given by Y = zF(K, N^d ). Define a Comp..
"Timeshares" are classified as one of the business continuity strategies. Explain how they work and why a company would choose time-shares over mutual agreement
Please explain your answer in the language of economics by stating the possible shift(s) of demand and/or supply curves in the gas market.
What is the role of local government leadership in assuring that departments and divisions work together to achieve municipal goals and objectives?
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