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EARMARKS-EFFICIENT PUBLIC GOODS OR INEFFICIENT PUBLIC PORK?
The advocacy organization Citizens A gainst Government Waste (CAGW) identifies earmarks in current legislation that it concludes reflect government waste. Go to and search through the CAGW Web site to find five recent examples of alleged wasteful expenditures. What kinds of additional information would you need before you accepted the group's assertion that each of the five projects is indeed wasteful? Explain how a Federally funded project might be wasteful from a national perspective, yet still be highly beneficial for a specific city or state.
Suppose that fixed costs increase by $50 but the prevailing market price remains unchanged. Using algebra determine the effects of this change in cost on the profit maximizing output and the optimal profit. Do you see any change from your answer t..
Jethro has been promised a payment of $1000, which is to be paid exactly 8 years from now. He is completely certain that the payment will in fact be made. Jethro believes that the appropriate discount rate is 5% per year, and that this will contin..
Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the following: 1.Compute the price elasticity of demand ..
Why is the pollution haven hypothesis more likely to be correct in the case of recycled batteries than in the case of sock production?
Determines child test score in Kindergarten and this means that the total effect on test scores of giving the family another dollar is
Are there any separating equilibria? Pooling equilibria? If so, what are they? Upon what do your answers depend? Explain using graphs.
What is the price elasticity of demand for bananas?
Suppose that in the domestic market for computer chips the demand is Pd = 110 - Qd. The domestic supply is Ps = 10 + Qs. Foreign suppliers would be willing to supply any number of chips at a price of 30$.
Etisalat and Du are duopolists. If they form a cartel between themselves, then what will happen to price and output in the market. Discuss your answer with a relevant diagram.
An engineering student bought a car at a local used car lot. Including tax and insurance, the total price was 3000. He is to pay for the car in 12 equal monthly payments, beginning with the first payment immediately. how much will the car cost the ..
A. Calculate the equilibrium price and equilibrium quantity of rice for 2009. B. Calculate the elasticity of demand and elasticity of supply;what do you conclude from these answers whether these are elastic orinelastic.(Marks = 4+6)
Where Qt represents the quantity of widgets sold per period t, Pt represents the price of widgets during period t, and Mt represents average household income of customers during period t. You are also given the following information about the regre..
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