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Market for pollution rightsThe following graph shows the market for pollution rightsa. If there are no restrictions on pollution, what amount is discharged?b. What is the quantity supplied and the quantity demanded if the government restricts the amount of discharge to Q* but gives the permits away?c. Where is market equilibrium if the government sells the permits? Illustrate this on the graphd. What happens to market equilibrium if the government reduces the amount of discharge permitted to Q**? Illustrate this on the graft.
Suppose the airline is offered $4,000 per week to haul freight along the route for a local firm. This will mean replacing one of the weekly passenger flights with a freight flight (at the same operating cost).
Some real estate economists have argued that anchor stores in shopping malls create significant externalities for overall sales.
New federal housing information demonstrate that the country's most overheated local housing markets make up such a large share of total United States market that a sharp fall in their value could stall or slow economic growth.
Illustrate what are the roles of central bank independence and financial market development in budget deficits and inflation.
Describe the crowding-out effect of an increase in government purchases. Why does the magnitude of the crowding-out effect depend on how responsive interest rates are to increased government borrowing and how responsive investment is to changes in..
It is mandetary that a rational customer will not purchase any units of the product represented by these data.
If the government uses its knowledge of its monopolistic position, Illustrate what criteria will it employ when determining how many soldiers to recruit. What happens if a mandatory draft is implemented.
The financial analysis department at MorTex estimates that the price of a textile machine is $ 600 per day. Can management reduce the cost of assembling 5,400 units per day by purchasing a textile machine and using less labor? Why or why not?
Is the economy of a big city more competitive than that in a small town or given neighborhood? How? Do you think your local grocer has monopoly power?
Suppose Panama produces only two goods, bananas and hats. If Panama has a comparative advantage in bananas, a move toward free trade will, a. harm hat workers, benefit banana workers, but benefit the nation as a whole. b. harm hat workers, harm bana..
One supply-side measure introduced by the Reagan Administration was a cut in income tax rates. Use an aggregatedemand/aggregate supply diagram to show what effect was intended. What might happen if such a tax cut also shifted the aggregate demand ..
Suppose a business experiences a sudden increase in its fixed costs. For example, suppose property taxes increase dramatically. What impact, if any, will this have the firm's AFC (average fixed cost), AVC (average variable cost), ATC (average tota..
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