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Suppose that an impending environmental regulation to control the hazard of premaure death from 5/100,000 to 1/100,000 per year in exposed population of five million people. What is the maximum this regulaion could cost and still have benefits be at least as large as the costs?
One type of benefits involves giving workers discounts on the firm’s products. We noted that this type of system could reduce the firm’s costs by reducing some marketing expenses. Explain why offering such discounts (as opposed to increasing workers’..
Compare the change in the quantity of raw steel exchanged at the market level with the change in raw steel produced by a representative firm. How do you explain this difference?
Post and discuss why the tax credit enacted by the 2009 American Recovery and Reinvestment Act has no effect on the employees’ supply of labor using the concepts of consumer surplus, producer surplus and deadweight loss. Apply the effects of the Soci..
Let’s say that there are many non-traded goods relative to traded goods. You are comparing the income of a rich country to the income of a poor country. For the poor country, do you expect PPP-adjusted income to be higher or lower than income calcula..
Facts: Partly because some major soy growers have switched to high-priced corn, and partly due to bad weather, world production of soy has been running well below worldwide sales for four years. Soy is now in relatively short supply and in response t..
Using a required reserve ratio of 10% and assuming that banks keep no excess reserves, what is the value of government securities the Fed must purchase if it wants to increase the money supply by $2 million?
What information will we get from a competitive analysis that will help us to develop gaming content and evaluate our target market?
The Errata Book Company is a firm that sells its book to two types of consumers, type 1 and type 2. The marginal revenue Errata gets from type 1 consumers is: MR1 = 20 - 2Q1, and the marginal revenue Errata gets from type 2 consumers is: MR2 = 15 - 3..
Toby uses apple (A) and labour (L) to produce juice (q). His production function is: Draw the Toby’s expansion path on a diagram from a). Derive an expression for the expansion path. How does it depend on the wage and the price of apple? What is Toby..
The appreciation in the dollar's exchange value from 1980 to 1985 made U.S. products (less/more) expensive and foreign products (less/more) expensive, (decreased, increased) U.S. imports and (decreased, increased) U.S. exports.
Looking at the circular flows model, how can the saving equals investment equation be derived?
Formulate a model for the problem
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