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In a short essay, provide a plausible real-world example of a positive externality.
A cost analysis is to be made to determine what, if anything, should be done in a situation offering three "do-something" and one "do-nothing" alternatives. Use a 10-year analysis period for the four mutually exclusive alternatives. At the end of Yea..
Explain why would elasticity of demand be important to you in determining the products on which the taxes should be levied.
The Snicker Company, the largest manufacturer of Snickerdoodles in State F, decided about two years ago to enter the cookie market in State G. Several small companies in State G manufacture Snickerdoodles, but the market has traditionally been very s..
Select a pertinent topic that will address at least one major issue from this course. This topic will be researched deep enough to allow you to demonstrate your knowledge of the topic. Present this choice with a brief bibliography
There are four individuals I , II, III and IV in a society with a demand for the public good given by Q = 100 – P, Q = 300 – P, Q = 400 – P and Q = 150 - P respectively. If the marginal cost of providing the public good is constant and is equal to $7..
how fiscal policy can ‘stabilize' economy. What about government borrowing and public debt.
Calculate the cross elasticity of Lorena's demand for golf at all two prices. Are movies and golf substitutes, complements or independent goods?
Consider a repeated game between a supplier (player 1) and a buyer (player 2). These two parties interact over an in nite number of periods. In each period, player 1 chooses a quality level q ∈ [0, 5] at cost q. Simultaneously, player 2 decides wheth..
"An increase in government transfers to households (eg. Unemployment insurance payments) not accompanied by an increase in taxes will cause the economy's level of saving to increase." Indicate whether this statement is true or false and explain why.
Assume that GDP (Y) is 3,000. Consumption (C) is given by the equation C = 1,200 + 0.3(Y – T) – 100 r, where r is the real interest rate. Investment (I) is given by the equation I = 1,500 – 50r. Taxes (T) are 2,000 and there is no government spending..
a. How much output should the firm produce in the short run? b. What price should the firm charge in the short run? c. What are the firm's short-run profits? d. What adjustments should be anticipated in the long run?
Assume which one company acquires all the suppliers in the industry and thereby creates a monopoly.
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