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Burning coal to generate electricity can create pollution. If the market for generating electricity is competitive and is allowed to operate without any government intervention, is the equilibrium quantity of coal burned equal to, more than, or less than the efficient quantity?
Consumers only consume Diet Coke and Potato Chips. Using indifference curves and budget constraints, graphically and intuitively explain what will happen to consumer’s optimal
In 2008 the Federal Reserve took pretty extraordinary measures in an attempt to stabilize the economy. What will the inflation rate be? How low can the Federal Reserve lower t
Alpha Company is a competitive price-taker firm that is currently producing 100 units of output (Q=100). At the current level of production, the firm has Marginal Revenue of (
Spending by the consumer sector is the driving force in the US economic system. Although the business and government sectors make a considerable contribution to the success of
Sally the Sleek’s preferences can be described by the utility function U(x,y) = x^2y^3/512. Prices are px = 2 and py = 6; she has an income of $80 to spend. How much should Sa
Use of the term "behavioural economics" has been criticized on two accounts: redundancyand ambiguity. Briefly explain these two criticisms and determine whether they have an
Assume which all other banks hold only the required amount of reserves. If Nan Bank Inc. decides to reduce its reserves to only the required amount, by how much would the ec
if possible, your most preferred to least preferred type of shock: positive demand shock, negative demand shock, positive supply shock, negative supply shock. Explain how wou
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