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What is an example of a positive externality? of a negative externality? Why are goods with negative externalities often overproduced? Why are goods with positive externalities often underproduced? Give an example for each.
assume you have the following model of the expenditure sectorsp c i g nxc 400 0.8ydio 200g 300 0.1y -
Briefly explain whether you agree with the student's reasoning.
a firm in a purely competitive industry has a typical structure. the normal rate of profit in the economy is 5 %. this firm is earning $5.50 on every $50 invested by its founders. what is the percentage rate return ? is the firm earning an economi..
The trees in Forest F grow such that the volume of timber at time t can be represented as f(t) = 900t - 50t2 + 60t3 + 7t4. (Note that these trees do not follow a typical biological growth function). The annual real interest rate is 0.19,
Define and characterize the steady-state equilibrium of this economy and study its stability.
Test the hypothesis that average nettfadoes not differ by 401(k) eligibility status; use a two-sided alternative. What is the dollar amount of the estimated difference?
Similarly, calculate the F statistic from the value of R2 obtained in the earnings function fitted using your EAEF data set and check that it is equal to the value printed in the output. Perform an appropriate F test.
An individual lives in a world where there are only two goods, X and Y. His utility function per period is given by: U = 25x - 0.5x^2 + 50y - y^2 The price of x is $4 and the price of y is $8.What is his marginal utility of money equal to at this l..
Suppose there is a monopoly in the market. What is the optimal quantity produced What is the monopoly price Denote optimal quantity and price with y*m, p*m. Represent the equilibrium in a graph in the (y, p) axis.
In the name of Simon Kuznets is the concept that the relationship in GDP and inequality is nonlinear. Kuznets hypothesized three phases in economic development.
A business license allows a firm to operate the business for one day. The city will auction up to seven business licenses to the highest bidders, and the auctioning licenses will continue as long as someone bids a positive amount for one of the li..
Sales have grown over this period with relatively few shocks due to uncontrollable weather, political and sporting events. This online retailer carries no inventories; when it receives a pre-paid on-line order from a customer.
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