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Roads are (or at least should be) built to reduce transportation costs. Often we think in terms of saving time. However, as each vehicle enters the highway (with the same primary purpose), the highway becomes more congested. Assuming that no driver enters the highway with the primary purpose of causing congestion, the congestion that results is a negative externality. Discuss possible ways to reduce the externality of highway congestion. Don't be afraid to explore a variety of solutions.
Could the Coase theorem be applied in this case? Briefly explain.
Your answer to this question should be no more than one page.
‘Creditors' include £3,700, which, together with the bank overdraft, are secured. Hence, £29,000 of the liabilities, made up of the bank overdraft and other secured creditors, must be paid first and in full.
Fed Sees Unemployment and Inflation Rising It is May 2008 and the Fed is confronted with a rising unemployment rate and rising inflation. Source: CNN, May 21, 2008. Explain the dilemma faced by the Fed in May 2008.
a. What are the short-run AVC and ATC functions? Hint: Costs are a function of the level of output produced so your functions should be in terms of Q. b. What is the short-run MC function?
Economic growth is a major issue in the current presidential election. The Romney campaign argues that tax cuts for investment is the best way to encourage economic growth. The Obama campaign says that government spending on infrastructure and edu..
1. What major impacts did the Great Recession had on Russia's economy? 2. How did the Economic Crisis of 2008 impact on Moscow window industry?
Suppose the FBI only keeps the required amount of reserves, what is the total amount of money (M1) on the island? Hint: this will be the maximum amount of money given the reserve ratio.
If airline supplied Q1, what would be consumer's gain or loss? producer's gain or loss? Change in total social welfare? Illustrate with a graph.
Show graphically the effects on the macroeconomy of a sharp rise in OPEC oil prices in? A. the short run and B. the long run. How do you account for the differences in your answers to parts A and B?
for each term define what it means and then discuss how it affects aggregate demand and aggregate supply. under
Stacy Equipment Company for 20C: How much is the net change in cash account during the year?
Edith agreed that in case of traffic jams, Shea Boulevard was a reasonable alternative.Neither of them knows the state of the highway ahead of time.
Why would Argentina have to give the United States seigniorage if it gave up its peso and completely dollarized its economy? How would you measure the size of Argentina's sacri?ce of seigniorage?
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