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"Suppose we have an agricultural valley 100km by 50km, with a polluting electricity power plant. The power plant causes pollution problems on a narrow strip of land downwind of the plant, and within this valley 10km in length and 500 m in width, but no problem outside that area. The total effect of pollution is to make crop land less productive. If we were to clean up the pollution, would we expect land prices to increase? Where? Would we expect wages to decline? Would the changes inland prices and/or wages filly reflect the benefits pf cleaning up pollution? Why or why not?”
Consider the following economy: C=3,I=1.5,G =2.65,T=2,f=0.5,d = 0.1,mpc =0.8. Write the mathematical expression of the consumption function. Write the mathematical expression of the investment function. Find the IS curve and graph it.
you are comparing a municipal bond and a US treasury bond as a possible investment for your corporation both bonds have the same maturity and both bonds are equally risky and equally liquid the treasury bonds yield 7% your corporations marginal incom..
Briefly explain how Airbus and Boeing develop their 20-year forecasts. Note the factors that influence projected air travel growth; some factors affect the demand curves while others influence supply. Be certain to distinguish between the two. Provid..
What are the properties of a general competitive equilibrium? Why is it considered a state of efficiency? What does efficiency, in the sense of a Pareto Optimum, mean? Did he prove the existence of a general competitive equilibrium?
Some of the most serious abuses taking place in developing countries deal with child labor, human slavery, sweatshops, bad governance, and environmental degradation. Select one (1) developing country, and examine the extent to which two (2) of these ..
Now suppose that US businesses become more optimistic about the profitability of investment, so that the demand for loanable funds shifts to the right. What is the effect on the U.S. real exchange rate (appreciate, depreciate, no change)?
The Affordable Care Act:
If there are 200 rooms also the operating costs $20,000 plus a cleaning fee of $5 per room per day, compute the profit during the one-week period.
Economic growth means that more goods and services are produced per consumer. The principle of comparative advantage helps explain the benefits of trade between nations. Government price supports on milk would increase the supply of affordable milk f..
Explain how consumer surplus changes when a monopoly price discriminates. Explain how consumer surplus, economic profit, and output change when a monopoly perfectly discriminates.
You are the manager of a firm that receives revenues of $60,000 per year from product X and $100,000 per year from product Y. The own price elasticity of demand for product X is -2, and the cross-price elasticity of demand between product Y and X is ..
Find out the optimal price-quantity if the firm is not able to price discriminate.
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