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It has been proposed that toll collection on the Massachusetts Turnpike, a key commuter route into Boston from the west, be discontinued. Proponents argue that tolls have long ago paid for the cost of building the road; now they just provide cash for tax bureaucracy. A number of economists are opposing the repeal of tolls on the grounds that they serve to internalize externalities. Explain this argument and discuss why the government often gets involved when finding solutions for externalities.
For a world in which international trade would be according to the differences featured in the Heckscher-Ohlin theory, the shift from no trade to free trade is like a zero-sum game.
The Big Mac Price Index calculated through the Economist has consistently found the United State dollar to be undervalued against some other major currencies,
Suppose that the Untied States decides to subsidize the export of U.S. agricultural products, but it does not increase taxes or decrease any other government spending to offset this expenditure. Using a three-panel diagram, show what happens to na..
Discuss why are manufacturers’ new orders, nondefense capital goods, an appropriate leading indicator and explain w hy is the index of industrial production an appropriate coincident indicator?
What do these numbers tell you about the phase of the business cycle in the United States, Euro area, and Japan in 2008 What do these numbers tell us about the relative size of the natural unemployment rates in the United States, the Euro Area, an..
The widget industry in Anytown is a monopoly, controlled through Widget Corporation Its demand curve for the local market is given through
Japanese legislature is considering imposing a quota that would reduce the number of pounds of fish products you are permitted to ship to Japan each year. Your first instinct is to call the trade representative of your country to lobby against the..
Make a domestic supply and demand diagrams for an item in which the U.S. does not have a comparative advantage. Discuss what impact do foreign imports have on domestic price and quantity?
Certainly the most dramatic change in the structure of the U.S. labor force in the period since the Second World War has been the increase in participation by married women in paid employment. which led to increased numbers of employed married wome..
what will be the impact on American business, in terms of how businesses create value by integrating the production and distribution of goods, services, and information?
Suppose one company purchases another company. What issues might occur as they attempt to merge their respective performance management systems?
The U.S. Postal Service (USPS) operates at a loss but its closest competitors - UPS and FedEx - both operate at a profit. Suggest how fixed costs have contributed to the situation of the USPS. Provide support for your response.
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