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a) What is an externality? Give one example of a positive and one example of a negative externality. Explain why your examples are externalities.
b) Why does a negative externality create a market failure and how can this market failure be solved by the government? Fully explain your answer.
Solve for the number of permits each firm holds after a permit market operates, the price of the permit, and total private costs of the permit system.
A prominent senator has calculated the total social benefit of the current amount of space exploration at $3 billion per year. The total social cost of space exploration is currently only $2 billion. The senator argues that a net gain to society w..
Political Economists suggest that discrimination can be eliminated or reduced by..
You live in a small town with only one grocery store. the demand curve for food in your town by p=35-1/5q. The grocery store has a total cost curve of tc = 50+1.25Q. Graph the Demand, Marginal Revenue, Marginal Cost, and Average Total Cost curves. Wh..
Use the theory of transaction costs to justify protecting the following rights by injunction or damages: Suppose that two people choose to litigate a dispute. Should the law presume that if two parties are prepared to litigate, transaction costs must..
Suppose that you save all of your money to spend next year. Explain how much will you be able to spend next year. How much will you be able to spend this year.
What can be accomplished about the impact of transportation costs on the price of the traded product in each trading nation.
Assume the NXL league in Q #3 above adds two expansion teams each generating $100 mil per year in revenue. How much TR (to the nearest $ mil) will UT now have AFTER revenue sharing is taken into account? a. 192 b. 240 c. 278 d. 230 e. 250
What are the main sources of government revenues? Describe in detail the main expansionary fiscal policy tools that the government
U.S. Higher alcohol taxes, more traffic deaths. Why might re be more traffic deaths in states that have higher alcohol taxes.
The law of supply states that there is a negative relationship between price and quantity demanded. An increase in consumer income will affect the supply of any given product. Joint output of individuals or nations will be maximized when goods are ex..
A new per unit tax imposed on milk consumers is Not a possible explanation that the equilibrium quantity of milk
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