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In 2010, Brazil began construction of the Belo Monte hydroelectric dam on the Xingu River (which feeds the Amazon River). The project is funded by a consortium of investors and is expected to cost $11 billion. It will begin producing electricity in 2015. Even though the dam will provide clean energy for millions of people, environmentalists are sharply opposed. They say it will devastate wildlife and the livelihoods of 40,000 people who live in the area to be fl ooded. Assume that the funding will occur evenly over the 5-year period from 2010 through 2014 at $2.2 billion per year. The disbenefi ts are estimated to be $100,000 for each displaced person and $1 billion for wildlife destruction. Assume that the disbenefi ts will occur evenly through the 5-year construction period and anticipated benefi ts will begin at the end of 2015 and continue indefi nitely. Use an interest rate of 8% per year to determine what the equivalent annual benefits must be to ensure a B/C ratio of at least 1.0.
Discuss the impact of expansionary and restrictive fiscal policies based on the basic Keynesian model, the crowding-out model, the new classical model, and supply-side model.
Why is are quarterly movements in a country‘s GDP measure so important? What is it called when a country has two successive negative quarters of economic growth?
Utilizing free markets and the price system always results in a more efficient resource allocation than central planning. Just look at what happened in Eastern Europe.
The demand for money in Friedman is
Elucidate the own price elasticity for ATM fees charged to non-customers. At the current ATM fee, should you raise or lower your ATM fees.
Illustrate and fully explain using an example of relevant cost (a cost whose value does affect the optimal decision) and an example of irrelevant cost (a cost whose value does not affect the optimal decision) to the business regarding this decisio..
Show analytically and show graphically that, in Keynesian consumption function, the average propensity of consumption is always bigger that marginal propensity
The annual fixed cost for an inspecting and profiling web controller manufacturing company is $44,000 and variable cost is $38/unit. If selling price per unit is p = 495 -.05x, what is the company’s range of profitability demand? What is the optimum ..
Explain what is the stance of other developed countries on this issue.
Find the optimal crude oil allocation in the preceding example if the profit associated with fiber were cut in half, that is, fell to $.375 per square foot.
A company is trying to provide goods and services to customers in a balanced customer benefit package CPB. Do you see any conflicts in a goods-producing versus service-providing way of thinking
Why are economists concerned about the understanding or overstating potential GDP and what factors might have led potential GDP to rise in the late 1990s?
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