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What is a definition of externalities. How does the presence of an externality distort a normal free market? What three potential solutions are suggested for overcoming externalities? How do they prevent an externality such as pollution?
It can be argued that democracy and capitalism are concepts that are fundamentally incompatible with each other. Democracy is built on the principle of equality
Are firms with a high percentage of union employees more likely to go bankrupt because of the higher wages that they pay? Why or why not? If immigration is reduced, what is the impact on the wage for low-skilled labor?
Use the principle of contestable markets theory, inter-industry competition, and foreign competition to provide an economic argument for or against deregulation of an industry.
Elucidate how that influences the marginal benefits and marginal costs associated with the decision to purchase a house.
An environmental testing company needs to purchase $40,000 worth of equipment 2 years from now. At an interest rate of 20% per year compounded quarterly, the present worth of the equipment is closest to:
The change in equilibrium quantity will be:
What does Friedman mean when he says the Earth is becomming "hot, flat, and crowded?" Describe three of the key problems that Friedman identifies in the book and explin why they re important.
Raytheon’s State College location had a gross income of $20,000,000 in 2015. In 2015 they also paid $3,000,000 in employee salaries, $4,000,000 in operating and maintenance costs, $800,000 in depreciation expense, $200,000 in loan principal payment, ..
"No firm is completely sheltered from rivals; all firms compete for consumer dollars. If that is so, then pure monopoly does not exist." Do you agree? Explain. How might you use the chapter's concept of cross elasticity of demand to judge whether ..
GM's Treasury Group has asked you to hedge the negative effect of a possible dollar appreciation stemming from its Opel-Vauxhall subsidiary.
The year is 2035. In many occupations, robots are replacing humans. As it turns out, robots make very good house cleaners, but very poor ski instructors. Assuming the other determinants of demand for the two services are roughly similar, you would ex..
Show and discuss the economics of land reform policy to redistribute agricultural lands across two equal groups of farmers. Assume the two groups have the same human capital in terms of farming (same Marginal Product curves) and that the amount of ag..
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