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Question: Suppose that your state is considering a law that would force all monopolies to charge the efficient price that would prevail if the market were competitive. Explain to your legislator why the state will have to subsidize natural monopolies if this law goes into effect.
How can we measure the opportunity cost of producing a good? Using a bowed outward production possibilities curve between ice cream and hammers, identify graphically the opportunity cost of obtaining an additional hammer.
What were each of their views of the causes recessions and solutions to fixing them? In each of their views, what place did government have to improve markets
Define a trade deficit and a trade surplus. What are the implications of a long-term trade deficit or trade surplus? What techniques are available to correct balance of payment deficit or surplus?
Markets are where people exchange information about potential transactions. If so, can advertising create economic value? Explain.
In mid-2002, it was announced that one of the leading bond funds managed by PIMCO now had more assets under management than the Fidelity Magellan Fund.
How do the principles of managed care influence business of health care? How health care is different from typical business market with a more tangible product?
Why do income inequalities exist? How are income inequalities measured? How have income inequalities changed from 1980 to the present?
How society manages its scarce resources and benefits from economic interdependence? Why the demand curve slopes downward and the supply curve slopes upward?
What is the difference between ordinal utility and cardinal utility? Explain why the assumption of car- dinal utility is not needed in order to rank consumer choices.
To help you connect what you're learning in class with current events, you are required to find an economics-related news article, read it, and write a short paper connecting your findings to topics we've discussed in class.
How might debt/equity swaps help solve the international debt problem? Point out the benefits and drawbacks from the viewpoint of the debtor country. Why do you think the debt/equity swap market has remained small over the years?
What is the equilibrium wage rate prior to the law being enacted? What are total labor earnings at the equilibrium wage?
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