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PUBLIC CHOICE:
1. Do you feel you have input to the allocation of public goods by voting in your local community? What about at the state and federal levels? Why or why not?
2. Do you feel your preferences are heard and heeded? Why or why not?
3. The chapter discusses the notion that predicting changes in collective decision making can be achieved by focusing on the median voter. However the increases in median income have increased in recent years among individuals, but not so proportionately for families.
We’ve all heard the cliché that “nice guys finish last.” Is this true in marketing? Do firms that use good ethical practices have an advantage or disadvantage? Do you think consumers will pay a few cents more for non-polluting soap or environmentally..
Explain how they will help to improve the GDP as a tool for measuring the well-being of a nation.
Elucidate what could be done to encourage people to spend more so as to increase aggregate demand and invariably, create employment possibilities.
The following table lists the name, gender, height and reservation wage of 10 persons willing to work as firefighters in Timber Creek. What is the lowest wage that Timber Creek must pay to hire five firefighters? You answered the question $380/week (..
As the saying goes, "the only sure things in life are death and taxes." This saying points out the result that everything having to do with taxes is an automatic fiscal policy.
What is the economic issue highlighted when economists refer to the "market for lemons?" How is that issue relevant for health insurance markets?
Define the law of supply and the law of demand. Discuss how market supply differs from individual supply.
What are the two primary factors that determine the elasticity of demand for a given product or services?
Suppose that Mexican investors decide to pour money (invest) into the US fracking industry. Assume that the US and Mexico have floating currency regimes. Graph the US and HOME starting with BOP=0 at e1. Next, explain and show on the graph the changes..
Assume that investment is highly insensitive to the interest rate. Explain what the effects are on interest and income of an increase in government expenditure (G). Which component(s) of aggregate demand are crowded out (i.e., reduced)? Use an IS-LM ..
What is the per worker production function for Y = K^1/3 x L^2/3? The answer should be in per worker form without the labor variable still there.
(i) Explain how it is possible for there to be a higher likelihood of being rich in a social democracy like Scandinavian countries that have high taxes.
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