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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?
Illustrate what would the benefits of each action be (besides emissions reduction)?
Illustrate what would the costs of each action be?
How would you decide what was the best level of emission reduction?
This graphing calculator illustrates the demand for spaghetti dinners served in all the restaurants in a society.
Government encourage a decision to expand? How would it affect the reputation of the business?
How might you construct a measure of the "change in the price level" What additional information might you need to construct your measure.
The vertical long run AS curve compatible with classical economics implies that AD only determines the price level
hould the measure of imports used in the GNP accounts therefore be defined to include only imports of FINAL goods and services from abroad. What about export.
When should this item be reordered. What could be the risk of stockout would result from a decision not to have any safety stock.
As weekend prices skyrocket more people will play golf during the week and eventually the weekend prices will drop and weekday prices. Differentiate among weekday and weekend prices.
Suppose that all wages also prices in an economy are indexed to increase. Explain there can still be an increase tax.
Explain how each change mentioned in the article impacts upon the aggregate expenditure model.
Illustrate how many would you expect to be sold under each pair of price and income demand elasticity estimates.
Illustrate what can we say about the elasticity of demand for Larissa's legal services. Elucidate which is consistent with the direction of these shifts
increases the amount of a product that consumers buy because it keeps the price below the competitive market equilibrium. Elucidate do you agree with the student's reasoning.
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