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Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant, answer the following questions:What two policies could you use to reduce the total amount of emissions?Why do you think they each would work?What would the benefits of each action be (besides emissions reduction)?What would the costs of each action be?How would you decide what was the best level of emission reduction?
If your bank pays 5.5 percent interest on savings deposits, what is the simple interest paid in the third year on an initial $100 deposit.
You are considering auctioning a Leonardo Da Vinci original sketch. You entice four bidders to come to your auction. The bidders' valuations of the sketch in decreasing order are $3.0, $2.2, $2.0, and $1.5 (in millions). If you used a second-price..
How to Restore Participating and Self-Support to Free Enterprise (Harvard University Press, 197), economist Edmund Phelps offers this plan to help the working poor: apply tax credits for "qualified employers" or hire disadvantaged people for "elig..
What is the difference between the real interest rate and the nominal interest rate? How would not knowing the difference effect perceptions of the economy and affect people's decisions?
If the price of a good decreases, the substitution effect shows the increase in the quantity of the good demanded, holding income constant.
research information on companies that have engaged in monopoly behavior, such as Microsoft, Google, or Wal-Mart, and explain how society has been affected by the monopoly behavior using that information.
Suppose Gillette makes razors and blades. The marginal cost of producing blades is 1 and assume the marginal cost of producing razors is 5. Gillete has a monopoly in the razor market, but the blade market is competitive.There are two types of cons..
As a government needs to increase tax income, it will often increase the sales tax on gasoline.
Suppose a single parent can work up to 16 hours per day at a wage rate of $10.00 per hour. Various income maintenance programs have been developed to assure a minimum level of income for low-income families, such as Aid to Families with Dependent ..
What are government's fiscal policy options for ending severe demand-pull inflation? Which of these fiscal options do you think might be favored by a person who wants to preserve the size of government?
which of the following three expressions uses the economists definition of money a. how much money did you earn last week b. when i go to the store, i always make sure that i have enough money.c. the love of money is the root of all evil
Illustrate what is the estimated size of the union salary advantage. How might this advantage diminish the efficiency with which labor resources are allocated.
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