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Market equilibrium is thought to be efficient because the amount of social surplus or total surplus is maximized. Explain using economic terminology why pollution (negative externality) AND education (positive externality) leads to market failure. (as detail as possible)
What are the economic justifications of the size premium? In factor pricing models like the intertemportal capital asset pricing model (I-CAPM) or arbitrage pricing theory (APT), it is assumed that exposure to one of these factors represent exposure ..
What do you think about soundness of the financial sector in the country of Ukraine? What is the structure of the banking sector? How large? State owned share? Foreign ownership? Is it well regulated?
How should immigration law be reformed? Does the United States have any ethical duties to undocumented (illegal) aliens who come here to work? How can the law be fair and balance the rights of immigrants, their families, the companies that employ the..
According to statistics provided by the Federal Reserve, total reserves of commercial banks currently equal $1.63 trillion. Required reserves are $130 billion, so excess reserves total approximately $1.50 trillion. Would the existing reserves be suff..
Price will increase; quantity cannot be determined. (Assume CD players are normal goods.) Which of following will happen to equilibrium price and equilibrium quantity for CD players
Some Health Economists believe that the demand for medical care may be “supplier” or physician-induced. State whether under a Fee-for-Service and under a Capitation financing structure physicians will have an incentive to increase or decrease demand.
You are a member of a presidential commission appointed to consider a mandatory national health insurance plan and the question of how to fund the plan is being discussed.
Suppose the authorities are considering either a tradable emission permit system, in which they give half the permits to each firm, or a tax system. If both systems work perfectly, how much will the firms have to pay, in total, for pollution reductio..
The three primary systems for allocating resources are
Mortgage-backed securities are: If the real rate of return is 2 percent, and the inflation rate is 2 percent, then the nominal interest rate must be:
q1. dynamic rather than static demand and supply conditions are typically observed in markets of real world. hence
A monopolist faces a market demand curve given by: Q = 70 – P. This monopolist perfectly price discriminate among its customers. If the monopolist can produce at constant average and marginal costs of AC = MC = 6, what are the monopolist’s profits ar..
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