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There are externalities to education -- others beside the student attending college benefit. What are some of the benefits to society of education? Positive Externality: a side-effect which is associated with a market, whereby production benefits parties other than the producer and yet the producer is not compensated. In other words, when the consumption of a good or service creates benefits that spill over to third parties, the marginal social benefit is greater than the marginal private benefit.
Elaborate and Explain in a minimum of 250 words.
Katherine advertises to sell cookies for $4 a dozen. She sells 50 dozen, and decides that she can charge more. She raises the price to $6 a dozen and sells 40 dozen. What is the elasticity of demand? Assuming that the elasticity of demand is constant..
Microsoft emerges to have a monopoly with over 90% of the personal Calculator operating market. Why then would it not be charging a monopoly cost.
Other things being equal, woudl this tend to increase planned expenditure in the United States by exactly, more than, or less than $50,000? Would it shift the aggregate demand curve to the right, the left or not at all? Explain in detail.
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..
Assume that skilled wages are twice that of unskilled wages, and that half of the population fits into each category, skilled and unskilled. Graph the Lorenz curve and calculate the gini coefficient.
Draw the appropriate graph assuming that the economy is operating below full employment. Assuming the aggregate demand shortfall is $1466B and MPC is .72, calculate the amount of desired fiscal stimulus.
If a city government implements the living wage concept as a basis for paying its employees should it use the same minimum for all workers, or should workers with larger families receeive more? what would be the pros and cons of each approach?
Your company has two investment opportunities under consideration with the cash flows shown below. The company’s before-tax MARR is 12%. Assuming that the capital is available for either investment and they are mutually exclusive, determine which one..
Explain these varied outcomes in terms of how the market system answers the question "What goods and services will be produced?"
Why might funds be available on less favorable terms for human capital investments than for physical capital investments? Can you provide a rationale for the argument that public subsidies should diminish as students advance to higher and higher educ..
Because real investment by foreigners expands a country’s capital stock and hence presumably its output and income, why should any country consider restricting foreign investment?
Firm 1 and Firm 2 compete in an industry and must decide whether to introduce an upgrade to their existing products. The nature of the strategic interaction is described by the game box, where (Y) means “upgrade” and (N) means “do not upgrade”. Draw ..
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