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• Many would argue that in a capitalistic economy, the government cannot provide goods and services as efficiently as the private sector. For example, most arguments for and against the Affordable Health Care Act center on the efficiency of the government in managing and operating a health care system. Do you think the government can provide goods and services to the public as efficiently as or better than the private sector? Support your conclusions with examples and applications.
• In a free-market economy, firms face some degree of uncertainty, or risk. Some of this risk is controllable, and some is not. Identify the different types of risk that a business might encounter in the marketplace and identify whether they are controllable or uncontrollable. How can a business incorporate risk into the decision-making process?
Why would cash transfers typically be preferred by recipients over in-kind transfers? What are the pros and cons of each from a government perspective? Respond to at least two of your classmates.
A firm has two variable factors and a production function y = (2x1 + 4x2) 1/2. Without taking any derivatives, determine the technical rate of substitution between x1 and x2.
Have you thought about starting your own business? What opportunities seem attractive? What type of financial resources and personal skills would you need to launch a new business? How would you obtain these financial skills and personal resources?
Mary's indifference map and budget constraint for goods x and y are shown below. If Mary spends all her money on x and y which bundle will she choose to maximize her utility?
Describe the advantages and disadvantages of acquisitions as a means of establishing a wholly owned subsidiary. Describe the pros and cons of Greenfield Ventures.
What recommendations, i.e. future strategic direction, would you make for the economy (country) to sustain economic growth? Word limit 1000 words. Learning Outcome: 4 & 5
There are three groups in a community. Their demand curves for public television in hours of programming, T, are given respectively by. What is the efficient number of hours of public television? How much public television would a competitive private..
There are two players. Players move sequentially starting with player 1, followed by player 2, followed by player 1 again etc. Each time that a player moves, she can choose a number from the set {1, 2, 3, 4, 5, 6, 7, 8, 9, 10}. The first player who b..
You just bought a 10-year-old house. The house is located in a expensive neighborhood. You do have to do some repairs. How does that transaction influence GDP? If the house is purchased with the assistance of a real estate agent, is this payment incl..
Burling Water Cooperative currently contracts the removal of small amounts of hydrogen sulfide from its well water using manganese dioxide filtration prior to the addition of chlorine and fluoride. contract renewal for 5 years will cost $75,000 annua..
Given a firm’s revenue and cost functions: Construct a profit function, determine the level of Q that maximizes profits, and prove that it is a maximum by invoking the second-derivative test
What is rent seeking behavior? How does it explain why government has grown in recent years and how it explain why it is difficult to change tax or spending policies in the United States?
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