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Discuss the following issues?
A)identify the source of the externality
B)measuring the external cost of the externality
C)internalising the externality with an efficient corrective tax per unit of production
Some states have had laws limiting the sale of most goods on Sunday. Most customers oppose these laws because they discover Sunday afternoon a good time to shop,
During the 1980s and 1990s, the United States experienced a significant inflow of capital from other countries. For example, Toyota, BMW, and other foreign car companies built auto plants in the United States.
Solve for the price and quantity that the monopolist would choose to maximize its profit under the more advanced technology. And also calculate the resulting profit.
What will be the bond new prices if market yields change immediately by +/ - 0.10 percent? What will be the new prices if market yields change immediately by +/ - 2.00 percent?
The impact of Energy price on the Aggregate Supply, this is a topic we have been discussing in my macroeconomics class and I am completely lost.
Rachel utility function is given by U= I 1/2 , where I represents annual income in thousands of dollars. Assume Rachel is currently earning income of $23,000 (I =23) and can earn that income next year with certainty.
Consider that demand elasticity is defined as the percentage change in quantity divided
Suppose that because of the ongoing financial turmoil banks become more prudent: that is, other things equal, banks want to hold more excess reserves and make fewer loans.
To decrease the federal deficit, government would have to cut back on government buy, transfer payments, or increase taxes. How does the federal deficit affect GDP and multiplier?
Analyze the factors that influence the banks desired excess reserve ratio, r e . What would happen to the magnitude of r e if:
Scandia Bank has issued a one-year, $1 million CD paying 5.75 percent to fund a one-year loan paying an interest rate of 6 percent. The principal of the loan will be paid in two installments: $500,000 in six months and the balance at the end of the y..
Suppose that Wal-World and Tarbo are independently deciding whether to implement a new bar code technology. It is less costly for their suppliers to use one system and the following payoff matrix shows the profits per year for each company resulti..
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