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User charges link funds produced to particular public services- individuals pay only for the services they actually use. Why doesn't all government funding come from such free will transactions and market exchange? A. User charges cannot provide a way to reflect demand for a service. B. Some services have non-appropriate characteristics. C. Some services are produced in systems showing economies of scale. D. None of the above.
Compare the costs and benefits of regulation. In your opinion, do the benefits outweigh the cost or do the costs outweigh the benefits? What are the advantages and disadvantages of deregulation?
Two firms compete in an undifferentiated Bertrand market. Suppose that the firms face a demand curve given by P = 60 – Q and both firms have constant marginal cost of 40. What is the market clearing Bertrand price and quantity?
Take the first, second, and cross derivative of F(K,N). Explain what the sign of each one means. Divide the function by N and show that the function can be written as F(K,N) = (KN)↵. Letting k = KN, express F(K,N) as a function of just k and let that..
Elucidate under a fixed exchange rate system expansionary monetary policy depletes foreign reserves at the federal reserve.
Assuming that the marginal product of labor is constant between 10 also 11 workers also the marginal product of capital is constant between 3 also 4 machines.
Social Security has revenues of $1.8 trillion and expenditures of $1.3 trillion. The nonsocial Security budget has revenue of $2.1 trillion and expenditures of $2.4 trillion. The official budget will report a _______________ (deficit/surplus) of $___..
Economists say that excess capacity in monopolistically competitive markets is "the cost to society of variety." What is the cost that economists are talking about and why is this cost the result of having a variety of goods and services?
Calculate the balance due, principle payment, and interest payment for each period of a new car loan. the nominal interest is 8% per year, compound monthly. Payments are made monthly for 5 years. The original loan is for $27,000.
R = 3% (annual domestic interest rate), R* = 5% (annual foreign interest rate) E = 2 (current spot rate; expressed as the price of pound in terms of us dollar) If the domestic money supply increases by 10% and drive the interest rate down by 1% in th..
A tariff on imports of a product hurts domestic consumers of this product more than it benefits domestic producers of the product. Do you agree or disagree with this statement, and why?
One critic of the North American Free Trade Agreement argued that "it can't be in our interest to sign this deal; Mexico gains too much from it." What does the theory of the gains from trade have to say about that criticism?
Describe how the equilibrium wage and employment levels are determined. Depict how a legal minimum wage alters market outcomes.
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