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1. A coal-powered plant that generates electricity for the western part of North Carolina has been given a quota by the Environmental Protection Agency that limits them to releasing 3 million particles of contaminants per day. Based on studies of the effect of this type of air pollution on the public, if the release of particles were decreased to 2 million per day, the public would gain $800,000 each year in additional labor income and higher property values. It would increase the operating costs of your plant by $500,000 per year to cut back from 3 to 2 million particles per day.
a) Is this situation resulting in an efficient level of emissions? Why or why not?
b) Suppose a tax of $1 per particle were imposed on the daily average of particle emissions. How does this change the decision to cut emissions back from 3 to 2 million particles per day?
Conceptually, what would happen to relative factor prices in labor-abundant country A and capital-abundant country B if the two countries joined together into a customs union? Why? Conceptually, why could the additional step of moving from a customs ..
Inflation and Quantity theory of Money. Adapted from Jones Q3 Ch 8: What is the key endogenous variable in the quantity theory? (Read chapter 8 if this isn't clear) Explain the effect on this key variable of the following changes (holding everything ..
What are the values of the slopes of the budget lines shown in the diagram, and what does the slope of a budget line tell us?
Write a two-page paper using the Ansoff Matrix results in the healthcare.
Here is what I’d like you to do, first, describe what quantitative easing entails and then give your opinion on its success or failure. Second, I’d like you to explain what negative interest rates entail and why this policy is being discussed serious..
Suppose the firm's profit maximization problem is to choose the labor input N so at to maximize: π = zF(K,N) – wN, where the firm's production technology is given by Y = zF(K, N) = zK^α*N*(1-α) , and 0
with monetary policy for closed, it is hard for authorities to stimulate demand. Interior design does this show that currency-board regime was a mistake.
Suppose the market for cigarettes is characterized by the following information: Qd=70–5P [Demand] Qs=3P–10 [Supply]. Calculate the magnitude of the consumer surplus and producer surplus in the pre-tax equilibrium. Calculate the tax revenue in the po..
A woman passionate about eradicating malaria in developing countries. What would you like to eradicate/improve in the developing world?
Create a program that simulates a standard Cash Register that meets the following requirements: Stores separate sales tax rates for food and non-food item. The rate for the food items will be 3.5% and non-food items will be 7%. The program will pro..
Which firm's product provides the greatest value-created. In an industry equilibrium in which the firms achieve consumer surplus parit.
Efficiency refers to whether a market outcome is fair, whereas equality refers to whether the maximum amount of output was produced from a given number of inputs. When a good is taxed, the tax revenue collected by the government equals the decrease i..
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