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“Pollution is causing $100 million worth of damage to the environment and we are only spending $1 million to reduce pollution. We are clearly not spending enough on fighting pollution.” Is this statement true? How can marginal analysis needed to answer this question? Explain.
Some people believe that if no U.S. military personnel were stationed abroad, terrorists would have less desire to harm the United States and its citizens. Do you agree? Why or why not? 75 to 150 words only.
The following question provides some practice calculating the AFPs for different insurance policies. If the individual remains healthy (80% probability), she will consume $500 in medical care in the upcoming year. An insurance policy with a $1000 ded..
Suppose that a Presidential candidate proposes to cut taxes by $120 billion in his or her first year in office. Assuming that the US is a large open economy and its MPC = 0.8, state the long run impact of this tax cut on Y, C, I, G, NX, r, ε, Sp, Sg,..
Describe the prevailing arguments of what constitutes a "just war," and assess the justice of the Vietnam War in that context. Speculate on how the world would be different today if the U.S. had not become involved in Vietnam.
Alice maximizes expected utility with an index u(x) = √ x where x is the total annual income. Her annual wage is $90000 and she gets an extra bonus of $70000 with probability 0.5. Alice’s certainty equivalent of this gamble is
As you know, the Affordable Care Act expands coverage for low-income US citizens by giving them access to Medicaid. As you also know, not every state has taken advantage of this Medicaid expansion. What economic argument can you make for expanding Me..
Given the following demand and supply curves: (a) Qd= -P+10 and (b) Qs=P. (1) calculate and show the inverse demand function, graph the two lines, and both calculate and label the consumer surplus and producer surplus. add an additional line for marg..
Use critical thinking to analyze the issue using economic concepts and theory learned in our class. Present two policy recommendations based on this issue. Use additional references to back up your arguments. Include at least one graph developed in t..
Following the collapse of systemically important banks in 2008, were the G-20 group of countries right in early 2009 to coordinate their fiscal policies and increase government spending? How would you distinguish the effect of such a policy on (i) co..
q1. compare and contrast the way classical and keynesian theory determine the demand for money and how it is related to
A hedger has taken a long position in the wheat futures market. What does a long position in the above example mean? What is the risk that is hedged in this transaction? What are the risks and rewards of buying versus writing options?
Draw supply and demand curves. Show the impact of an increase in demand on the price and quantity exchanged in the market. Show the impact of a decrease in demand on the price and quantity exchanged in the market.
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