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Problem
1. Think of a public policy-a local or national law, tax, or public service-that offers an incentive for a particular behavior. Explain what the incentive is, who is offering it, and what they are trying encourage or discourage. Does the incentive work?
2. Why do individuals or firms usually provide the goods and services people want?
Suppose that we are comparing two countries that are similar in every respect except the education of their population. In country 1, adults have 10 years of education. In country 2, alladults have 4 years of education. Use intuitions from the Solow ..
suppose that third national bank has reserves of 20000 and checkable deposits of 200000. the reserve ratio is 10
Allison's Auto Art is a company that applies pinstripes to vehicles. Allison's cost for a basic 1-color pinstriping job is $35, and she charges $95 for this service. For a total price of $175, Allison will apply a fancier 3-color pinstripe applicatio..
You have been asked to calculate the current balance on a loan that involves 5 equal mortgage payments of $200,000 per year (principal and interest).
Since the Great Recession of the first decade of the 21st century, the deficit of the Federal government of the United States and a number of nations belonging to the European Union (PIGS) has been central in the debate over the best approach to f..
Calculate Max's marginal utility from snorkelling at each number of hours per day. Does Max's marginal utility from snorkelling obey the principle.
part of the debate among economists on us airline deregulation in the 1978 involved the theory of contestable markets.
From the viewpoint of economic efficiency, does representative democracy do a good job of handling special-interest issues?
An assembly line can produce 60 units per hour. The line's hourly cost is $3600 on straight time (the first 8 hours). Workers are guaranteed a minimum.
Why are supply shocks so much harder than demand shocks for monetary policy to adjust to? Use the graph below to show your answer to this question.
Find MR and MC. b. Demonstrate that profit is maximized at the quantity where MR = MC. c. Derive the relationship between marginal reve-nue and the price elasticity of demand, and show that the profit-maximizing price and quantity will never be the u..
Choose either the European Union or the North American Free Trade Arrangement, and answer the given questions based on your choice:
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