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Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant, answer the following questions:1.What two policies could you use to reduce the total amount of emissions?2.Why do you think they each would work?3.What would the benefits of each action be (besides emissions reduction)?4.What would the costs of each action be?5.How would you decide what was the best level of emission reduction?
Critically discuss the strengths and weaknesses of using per capita national income (even once adjusted for purchasing power parity) as a measure of welfare. Discuss at least two alternative measures of national welfare that have been put forward? ..
Assume that a profit-maximizing firm is perfectly competitive in both the output and the factor markets and is at its long-run equilibrium. The firm's output is 100 units, its total revenue is $600.00, and the fixed cost of production is $50.00. B..
Explain why is it that increased productivity leads people to take out more loans - which then leads to more growth.
Illustrtae what are the nominal rates of interest for both the United States and the euro area?
Suppose someone tells you that, over time, free trade is helping capitalists and harming workers. What fact would you cite to challenge this statement?
Sprint acted as a well-managed business that takes the actions necessary to remain competitive in a very competitive marketplace.
Depends on your discussion, what is the most critical element(determinant) when considering the determinants of supply. In other words, what determinant has the greatest influence on the economy.
Suppose a country's nominal GDP is $600 billion, government expenditures less debt services are $145 billion, and revenue is $160 billion.
After natural disasters, such as hurricanes, some commentators point to 'bright-side'. It is, for example, often pointed out that natural disasters reason GDP for a region to spike upward during the post disaster cleanup.
During recent years, MicroChips Corporation has enjoyed substantial economic profits derived from patents covering a wide rang of inventions and innovations for microprocessors
Compute the elasticity of demand in going from 2 unit to 3 units. Is the demand elastic or inelastic in this range.
Compute the path of the economy, that is , calculate real GDP, the price level, the inflation rate and real money stock for each year until GDP I swithin 1% of the potential. (limit calculated values to 10 decimals points)
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