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Are the following statements true or false?
a) “If the assumptions of the median voter model hold, then using majority voting to determine the amount of a public good purchased by a city will lead to either an efficient level of the public good being provided or an under-provision of the public good. It cannot lead to an over-provision of the public good.”
b) A prominent senator has calculated the total social benefit of the current amount of space exploration at $3 billion per year. The total social cost of space exploration is currently only $2 billion. The senator argues that there would be a net gain to society by increasing the amount of space exploration until total costs rise enough to equal total benefits. Is the senator correct?
Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, illustrate what was the real interest rate you paid.
What are the characteristics of perfect competition? Why does this type of fast-food restaurant tend to display characteristics of perfect competition? Imagine you are running a firm with the characteristics of a perfectly competitive firm. Describe ..
As we noted in class, most members of labor unions work in the public sector, industries that are regulated, or industries in which production is concentrated into a few firms. Consider a perfectly competitive industry with many firms that produce th..
The factory operation creates smoke that affects nearby homeowners, causing respiratory ailments and similar problems.
How can you justify existence of government-granted monopolies for such public utilities as local telephone service, natural gas.
Summarize in words the predictions and limitations of the theoretical framework developed for the first exam: that is the predictions for the effect of capital accumulation.
A road building contractor has received a major highway construction contract that will require 50,000 m^3 of crushed stone each year for 5 years. The stone can be obtained from a quarry for $7.80/m^3. As an alternative, the contractor has decided to..
what are the various formes of dispute resolution available to your company? what are the advantages and the disadvantages of each for your company?
Your task is to use information about existing economic conditions to forecast U.S. and Canadian interest rates. The following information is available to you. Over the past six months, U.S. interest rate have declined, and Canadian interest rate hav..
Research one contemporary case of trade restriction, implemented by any nation. Research your topic, using at least 2 sources, and write a brief report (approximately 2 pages) on your findings.. Sources are documented properly. (MLA or APA style).
In an effort to bring inflation down they had set interest rates at 5% in 2018. How should the federal reserve react if they desire to bring inflation down to 3%. When will they achieve that goal? (Hint: maintain plenty of decimal places.)
A friend tells you that you should never be a patient in a teaching hospital because the death rate among patients in teaching hospitals is higher than in other hospitals. Write down a regression equation where the dependent variable is the death rat..
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