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Answer questions (a) and (b) for each of the following four examples:
(a) Is there an externality? If so, describe it, including references to whether it is positive or negative, and whether it is a consumption or production externality.
(b) If there is an externality, does it seem likely that private markets will arise that allow this externality to be internalized? Why or why not?
Consider a health utility questionnaire with only 3 domains (physical role, social role, and cognitive health), each of which has two levels (no problem and some problems). Calculate the utility of a person having some cognitive problems and some so..
Given the expected price level, policies for reaching potential GDP will work best if the funds provide.
Assume that there are 1,000 identical consumers in the market for good X, each with the same income and the same preferences. When the price of X is $50, the typical consumer 4 is willing and able to purchase 20 units of X. Show the effect of an incr..
Indicate whether each variable is discrete or continuous.
Based on your calculations in question 1, indicate whether the price elasticity of demand is elastic, inelastic or unit elastic for each time period given in Table 1. What factors might explain the price elasticity of demand for private car travel on..
Many economists specializing in "growth theory" contend that developing countries may achieve strong economic growth by increasing the amount of capital and labor available for production, but that this type of growth strategy is incapable of support..
The application of elasticity is very useful in evaluating the possible effects that a change in the price of a good or service has on total revenue collected. Consider the use of public transportation in a metropolitan environment.
How to define net exports and net capital outflow? What is it and its purpose, how is it used. Explain the relationship among saving, investment
Alto music is a levered company providing musical instruments and supplies through its retail outlets. The company is considering expanding into
Illustrate what was the main criticism of the present Texas constitution behind the Ratliff-Junell proposal for a latest constitution.
Consider the AS-AD model with money, where money is neutral. Suppose that half of the banks in the economy magically disappear. What will happen to the supply of credit? Suppose that the central bank responds to this by keeping the supply of money fi..
Presently, AFC has on its medical staff 10 doctors and 10 nurses. The daily wage of a doctor is $600, whereas a nurse is paid only $200 a day. Write the equation for the medical isocost of AFC.
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