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In the 1990 Clean Air Act Amendments, Congress and the EPA rely on the automobile industry to develop a cleaner automobile. At the same time, the government imposes a relatively minor federal tax on gasoline.
a. Do you see any problem with the implicit signals the federal government is sending to American auto manufacturers and to American car drivers through these policies? Briefly discuss.
b. Formulate a hypothetical economic policy to motivate automobile manufacturers to advance the technology of cleaner motor vehicles.
Heavy rains caused the flooding of the Mississipi River and the Missouri River as well as some of their tributaries. This flood represented an important macroeconomic shock significantly damaging the aggregate capital stock and ..
i.a. what is gross domestic product gdp and what is the use of it?b. comment on how well this measure serves its
If the product price is $70, at its optimal output, will the firm realize an economic profit, break even, or incur an economic loss? How much will the profit or loss be? Show all calculations.
Suppose that Omar’s marginal utility for cups of coffee is constant at 1.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats
What monetary policies do you think caused the crisis and what were the effects of the policies implemented in reaction to the crisis
Assume that bank deposits (D) are $3,200 billion, the required reserve ratio is 10%, and currency in circulation is $400 billion. What can the Fed do (in terms of open market operations) to lower the money supply by $100 billion? Explain. (Note assum..
1.what impact do natural resources have on economic growth? will it be possible for a country with few natural
2. Q=L1/2+K1/2+M1/2. For this production function, the marginal products of labor, capital, and materials are MPL =1/(2 L1/2), MPK =1/(2/K1/2), and MPM= 1/(2M1/2). Suppose that the input prices of labor, capital, and materials are w=1, r=1, and m=1, ..
What does the elasticity of substitution illustrate and explain the difference behind the U-shaped long run average cost curve.
Explain how either the Newhouse model or the Physician Workshop model could explain why hospitals might inefficiently over-invest in expensive, new technologies. What drives excessive technology investments in each model
determine the amount of producer surplus generated in each of the following situations.a dustin tries to sell his old
Evaluate price elasticity of demand
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