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In 2009, the Cash for Clunkers program was initiated to encourage consumers to trade in their old inefficient cars for a credit to buy new fuel-efficient cars. What are some of the external benefits from such a policy?
Economists claim that there are several causes of economic inefficiency in medical care. List three basic causes and, for each, describe why it results in economic inefficiency and poor performance in medical markets.
Compare and contrast the two approaches of GDP computation mentioned in the textbook. Explain which approach you think is more reliable and gives more accurate estimates of GDP. Provide two examples—one of the U.S. and a second of another nation—to s..
Your firm is considering purchasing an old office building with an estimated remaining service life of 25 years. Recently, the tenants signed a long-term lease, which leads you to believe that the current rental income of $300,000 per year will remai..
Describe seven functions of Federal Reserve System and point out which one is playing the most important role.? What are the advantages and disadvantages of biofuels in terms of addressing the challenge of sustainable development? Explain fully?
In this 21st century, effective corporate governance is seemingly based upon a core set of ethical principles that guide a company’s actions, from the establishment of its strategic direction, its place in the market, the raising of capital, and the ..
One organization must have high fixed costs also low variable cost also the other must have low fixed costs also high variable costs.
Describe how free market features could be introduced to help alleviate the social problem through free market operations of supply and demand. Discuss the risks of introducing market mechanisms of supply and demand in situations where.
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1s elasticity of demand is -4, while group 2s is -3. Your marginal cost of producing the product is $20. Determine your optimal..
There was some dramatic change in the market structure that the one firm merges all the firms in the aforementioned industry. That means now the industry has a monopolist. Find the price, quantity, and the level of profit that a monopolist will face...
Carefully explain why the following is either true or false. "In a 2*2*2 heckscher-olin context, when a relatively labor-abundant country moves from autarky to trade, the real return to capital in the import-competing industry decreases and the real ..
Many individuals commit crime under conditions of temporary diminished rationality by discounting severely future consequences of criminal behavior (see chapter 12, Cooter and Ulen's textbook). Explain why policies that aim to increase the likelihood..
Firm is working alongside engineers from Ford Motor Company comparing two SUV models to launch for next year’s market. The smaller SUV model will have an initial cost of $22,000, an operating cost of $1,000 per year, and a salvage value of $12,000 af..
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