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Define the concept of an externality. Why will unregulated market systems not allocate resources efficiently where externalities are present? Draw a diagram to illustrate the over allocation of resources to a market characterized by negative externalities.
What is the price of a perpetuity that has a coupon of $50 per year and a YTM of 2.5% ? If the YTM doubles, what would happen to its price? Assume you just deposited $1,000 into bank account. The current real IR is 2%, and inflation is expected to be..
Illustrate what is micelles opportunity cost of producing potatoes and or chickens if she were to produce 200 pounds of potatoes per year and 50 chickens per year.
Suppose the current price of gasoline at the pump is $1 per gallon and that 1 million gallons are sold per month. A politician proposes to add a 10¢ tax to the price of a gallon of gasoline.
A computer in surface of road picks up a signal from your car and automatically charges you for use of road. Explain how could this technological change contribute to ending bottlenecks and rush hour congestion.
assume that isoland has a closed economy. Isoland national investment is $50,000,000, its private saving is $60,000,000 and its taxes minus transfer payment equal $65,000,000. Explain how much are islonad's government purchases.
What are the advantages and disadvantages of fixed versus floating exchange rates?
Malthusians and Neo-Malthusians believe that, eventually, the population of the earth will be exceeding the number of people able to be sustained by the earth's food production. As such, they advocated different forms of population control. However, ..
Determine the point price and income elasticities for household furniture
Elucidate each of his major points and decide whether you consider it valid or invalid. Be sure to justify your position.
What is the relationship between a firm's total revenue, profit, and total cost and define economies of scale and explain why they might arise. Define diseconomies of scale and explain why they might arise.
a company builds furniture. recently different woods they use have become harder to obtain. consultation with
One organization must have high fixed costs also low variable cost also the other must have low fixed costs also high variable costs.
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