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Privatization can be defined as "the process of returning to the private sector property or functions previously owned or performed by government". The basic idea is that there may be some services that the government is providing right now that the private sector might handle better. Sometimes the government no longer provides the service and allows private companies to run (and compete with each other) to provide the service (like sometimes happens with garbage pickup). Other times the government contracts with a company that can provide the service cheaper than the government agency could (like when a city contracts with a private landscaping company to trim the trees on public sidewalks). The idea is to have a more efficient, more effective service. Recently there have been some arguments that the United States Postal Service (USPS) should be privatized.
The discussion question(s) is:
Name one pro and one con of privatizing the USPS.
If you had the power to privatize the USPS, would you? Explain your response.
A Technology Management graduate student bought a motorcycle for $30,000, paying a down payment of $10,000. The dealership agrees to take the bike back for $8,000 at the end of 4 years. The student’s uncle owns the dealership. If the monthly payment ..
Explain how large a decline in the value of bank assets would it take to reduce this bank's capital to zero.
Name a product you purchased that would be part of the monopolistic competition market structure. Why do you think it is part of this market structure?
Compute the opportunity costs of going to each concert. Based on the Cost-Benefit Principle, which concert is the best choice.
q.analysis the demand for housing is often described as highly cyclical and very sensitive to housing prices and
q. two soft drinks sit side-by-side in a grocery store a six-pack of coca-cola a brand name sells for 3.00 while a
Elucidate why does the government create monopoly power via its patent system, when elsewhere it spends millions trying to prevent the emergence of or regulate monopoly power.
For each of the following utility functions, calculate (or figure out) the MRS and sketch out an indifference curve for U=4, plotting at least 2 points on each curve, and explain whether the preferences violate the diminishing MRS or convexity of ind..
Suppose that an MBA degree creates no externality because the benefits of an MBA are internalized by the student in the form of higher wages. If the government offers subsidies for MBAs, then which of the following statements is correct?
When price of gasoline increases significantly, why should the market price of small automobiles (e.g. Mini Cooper, Smart Car, etc.) also increase? In addition to showing the demand-supply graphs, also explain the reasons for any shift in supply and/..
Assume an economy without government and without trade. Suppose the Consumption function is given by C=100+0.8Y, whereas I=50. What is the equilibrium level of income in this case? What is the level of saving in equilibrium?
The total demand for funds curve slopes downward because a rise in the interest rate causes. In the classical view, if government purchases rise (and there is no other fiscal change),
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