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To properly justify the governmental provision of a public good, it must be the case that the __________ and that __________.
good is indeed a public good; the majority of voters want it to be provided
benefits exceed the costs; no lower cost provider exists
voters desire the good; no new taxes will be needed
benefits exceed the costs; a majority of voters value the good equally
When the_____ supply curve shifts outward or inward with an unchanged _____ curve, equilibrium price and quantity increase or? decrease, respectively. When the___ curve shifts outward or inward given an unchanged____ curve, equilibrium price moves in..
What is meant by the monetary approach to exchange-rate determination? What are its major predictions concerning exchange-rate movements? Give examples.
If the firm has a monopoly in product A and product B is sold in a competitive market, then what is the profit-maximizing tie-in sale price of product A?
Many insurance companies sell health insurance plans to companies. In these companies the employees pick the plan, but the set of offered plans is determined by the company. Recently, Blue Cross-Blue Shield, a health insurance company, ran a televisi..
What is the primary advantage of revealed-preference valuation methods (e.g. hedonic pricing and travel cost methods)? What is their primary disadvantage? Explain both answers briefly.
Two students, Ryan Wattenberg and Emma Bennett, are discussing the idea of convergence over coffee. Ryan considers convergence to be true in theory but impractical in the real world. He claims that most low-income developing countries are stuck in a ..
suppose the quantity of good x demanded by individual 1 is given by x1 10 ?? 2px 001i1 04py and the quantity of x
In pure competition when the market price of the product is initially higher than the minimum average cost of the firms, then:
Calculate dollar rates of return on a deposit 10,000 pounds in a London bank in a year when interest rate on pounds is 10 percent and dollar/pound exchange rate moves from 1.50 dollars per pound to 1.38 dollars per pound.
Laptops have also become easier also cheaper to produce as latest technology has come online.
Suppose Home and Foreign countries (H and F) trade two goods, G1 and G2, and each country is populated with 2 workers (workers can split work time between two industries). At home, one worker can produce either 1 units of G1 or 2 units of G2 in one d..
Describe three features of monopolistic competition that differentiate it from monopoly. Compare perfect competition and monopolistic competition. In what ways are they similar? In what ways are they different?
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