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Rationale for government intervention There are six major functions the government can perform in an economy. 1. The government provides a legal and social framework within which
a reduction in investment spending would lead to
limitation of kaldor hicks in compensation test and welfare criteria
f(x1 x2,x3,x4) =min(x1/4x22/3,x3+2x4)
Mr. Smith can cause an accident, which entails a monetary loss of $1000 to Ms. Adams. The likelihood of the accident depends on the precaution decisions by both individuals. Spe
Surplus The surplus is a condition under that supply for a good or service is in excess of the demand for that good or service. When this happens, there is commonly a reduction
1. Suppose the banking system has reserve of $750000, demand deposits of $2500000 and a reserve requirement of 20%. a. if the fed now purchases $125,000 worth of govt bonds from t
an increase in immigrants
#explain bains theory of limit pricing theory
marries model
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