Reference no: EM131068562
In the 1970's a popular governmental policy designed to reduce the negative externalities associated with air pollution was regulation. Governmental policy eventually evolved to "cap-and-trade." Using the economic analysis discussed in class (including graphs) describe how regulation works, explain how cap-and-trade works, and discuss whether and how cap-and-trade policies improve (from an economic perspective) upon regulation.
Describe, in words (no graphs), the First Theorem of Welfare Economics.
Suppose that there is a negative externality in the market for trout in Colorado. Letting Q represent pounds of trout, explain (using graphs and words) why government intervention in the market for trout may be appropriate.
Suppose that all trout are found in one (big) lake and that someone purchases the lake. So, they own the lake. Might government intervention be appropriate in this case? Explain your answer.
Recent debate about reducing carbon emissions has focused on the relative benefits of (a) a carbon cap-and-trade (permit) system and (b) a carbon tax (i.e., a tax on emissions of carbon).
(A) Using what we have learned in class, explain the economic logic underlying (a) and that underlying (b).
(B) From an economic efficiency perspective, is either policy (a) or policy (b) preferred? Of course, explain your answer.
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Problem regarding the cyclical unemployment
: Which of the following situations would be counted as cyclical unemployment?
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Invetory lavels of the dog beds for the upcoming quarter
: Question 1. Tucker Company manufactures dog beds.the following salected data ralates to Tucker Company's budgeted sales and invetory lavels of the dog beds for the upcoming quarter:
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How much of the premiums can nell inc deduct
: In December 2015, Nell, Inc., an accrual basis taxpayer, paid $12,000 for insurance premiums for her business for the 2016 calendar year. How much of the premiums can Nell, Inc., deduct in 2015?
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Use activity-based costing to allocate overhead
: 1.) Telecom Company would like to use activity-based costing to allocate overhead, rather than using one plant-wide rate. The company produced 6,000 cell phones (sells for $150) and 2,000 smart phones (sells for S350). The following estimates are ..
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First theorem of welfare economics
: Suppose that there is a negative externality in the market for trout in Colorado. Letting Q represent pounds of trout, explain (using graphs and words) why government intervention in the market for trout may be appropriate.
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Compute the balance in stock investment account of james co
: Prepare journal entries to record the Issuance of the bonds and payment of interest on July 1, assuming no previous accrual of interest. Compute the balance in the stock investment account of James Corporation.
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Income and substitution effects
: Explain changes in relative prices that lead to income and substitution effects and state how understanding the effect of an increase in the real interest rate.
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Addition of knowledge value to the board
: Demonstrates content knowledge through a full and complete original posting in response to the board topic. Two (minimum) or more (exceeding expectations) complete and thoughtful responses to other workshop participants that demonstrate addition of ..
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What is the difference between intellectual and moral virtue
: According to Aristotle, what is the difference between intellectual and moral virtues? Create a list of some traits that have been thought to be virtues, according to Aristotle and other virtue theorists.
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