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Regarding behavioral economics and social regulation: A. How has research in behavioral economics contributed to new and better social regulations? B. By definition, social regulations limit individual freedom and are paternalistic. Explain how a policy that is consistent with libertarian paternalism minimizes limits on freedom.
If an earthquake decreases cement supply by disabling a major cement plant and increases demand by necessitating repair jobs, what does the model of supply and demand definitely predict for the cement market?
Suppose that you are evaluating the market for Kellogg's cereal. The prices of Post and General Mills cereals increase. What will happen to Kellogg's cereals?
Explain why the budget line can be called "objective" but an indifference curve is called "subjective." Explain why, if a consumer is to be in equilibrium, the marginal rate of substitution of good X for good Y must equal the negative ratio of the pr..
The president of the United States announces in a press conference that he will fight the higher inflation rate with a new anti-inflation program. Predict what happen to interest rates if the public believes him.
If income rises from 1000 to 1800 and consumption rises from 1100 to 1700 the marginal propensity to save.
What are the four market types? Give an illustration of each. From a social standpoint, what is the problem with monopoly? Discuss this using an example for illustration.
Suppose that the market demand curve for bean sprouts is P=880-2Q, where P is the price and Q is total industry output. Suppose that the industry has two firms, a Stackleberg leader and a follower. Each firm has a constant marginal cost of $80 per un..
Suppose two competing stores each announce a "low price guarantee", meaning that each store would match the prices of the other store of they were lower. Does providing this guarantee masks it easier or more difficult to overcome the prisoner's dilem..
Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $75,000 and her store made $130,000 in profits. Assuming the change in compensation is the reason for the..
Illustrate what is the difference among a command economy also a market economy.
As we discussed, there are many different interest groups that exist in the United States today. For this activity, you will choose one such group and do some research to figure out what it does and how it does it. Research the web and other resource..
q1. select two products or services with which you are familiar - one produced in the u.s. and the other produced in
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