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1. Currently, there is considerable debate about the environmental impacts of burning coal. The Environmental Protection Agency has established higher standards for clean burning fuel. In most of the Midwest, the majority of electricity is generated from coal burning power plants. Based upon the material in Chapter 6, what do you think will be the probable impacts of the more stringent environmental regulations?
2. Make observations regarding who might be affected.
On August 15, 2014 Emma signed a contract to purchase 35,000 gallons of ethanol from Korey for resale at her ethanol station. When Emma signed the contract, the ethanol was warehoused in a holding tank at Korey's production facility. On August 24 lig..
Suppose two firms compete by selecting quantities q1 and q2, respectively, with the market price given by p = 1000 – 3q1 -3q2. Firm 1 (the incumbent) is already in the market. Firm 2 (the potential entrant) must decide whether or not to enter, and if..
What role do monetarists believe the government should play in the economy and why? After that has been discussed, what Keynesian and New classical economists believe about macroeconomic policy? Which role of thinking do you think you would fit in?
Assume that the economy is currently at potential real GDP. Which of the following would put the economy in an inflationary gap? A) temporary increase in wages B) greater stock market wealth C) higher business taxes D) higher marginal taxes
Use a labor/leisure model (with leisure hours on the horizontal axis and income on the vertical axis) and words to explain in detail why an income tax creates a welfare cost (or excess burden). Assume that the tax is a constant marginal tax on earned..
There are two players 1 and 2. re are two cards: "High" and "Low". Player 1 chooses at random one card. Write a strategic form also find optimal strategy of player.
Consider the following variation of the Romer model. Provide an economic interpretation for each equation. Demonstrate that 0
Each employer faces competitive weekly wages of $2,000 for blacks and $2,700 for whites. Suppose employers undervalue the efforts/skills of blacks in the production process. In particular, every firm is associated with a discrimination coefficient d,..
Creative Writing Chose any of our genres (fiction, creative nonfiction, poetry, and drama) and create a short piece (250 - 500 words) that generates an atmosphere of sorrow while maintaining a glimmer of hope.
The Chair of the council of Economic Advisers has requested that you write a short paper explaining how economic policy can be used to stabilize the economy and achieve a high level of economic growth during the next five years. Current situation in ..
The average starting salary for engineers for 2002 was $47,000. The average in 2015 was 65,000. If we assume salaries are tied to inflation, what has been the average yearly inflation rate for this period? And, what should we anticipate the salary wi..
Would it be fair if colleges allocated seats in courses on the basis of price? In other words, let students bid for available seats in classes, rather than using a first-come, first-served system based on some sort of administrative procedure. Explai..
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