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Consider the case of a regulator and a single polluter. Suppose the regulator knows the marginal damage from pollution but is unsure about the firms marginal savings from emitting. The regulator asks the firm to reveal its marginal savings from emitting schedule. Regulators know that if they use an emission fee, the firm has an incentive to lie about its marginal savings. Regulators also know that if they use a permit system, lying may still result. So the regulator announces that after being told the firm's marginal savings, the regulator will flip a coin to determine whether an emission fee or an emission permit will be used to control pollution. In this case, will the firm have an incentive to truthfully reveal its marginal saving from emissions? Why or why not?
Suppose if the economy currently has a frictional unemployment rate of 2%, structural unemployment of 2%, seasonal unemployment of 0.5%, and cyclical unemployment of 2%, determine the natural rate of unemployment?
What would an economists say that the burden of the FICA tax is shared equally. Who bears more of the tax burden Workers or employers.
Prior to 1999, PepsiCo did not have a product that competed directly against Sprite and had to decide whether to introduce such a soft drink. By not introducing a lemon-lime soft drink, PepsiCo would continue to earn a $200 million profit, and Coc..
Explain how many major wireless phone handset manufacturers are there. What is the market structure. What pricing strategies do wireless phone handset manufacturers use.
Explain how do you go about drawing an indifference for such a utility function.
Why it is important that prices are flexible in our economy? What happens if the government controlled the level of prices, how would this influence prices? How can you relate the law of demand to a recent purchase that you have had to make?
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
The Millennium Development Goals aims were to be achieved by 2015. A few will be met; many others will not. In either case despite great progress, poverty will remain a serious ongoing concern.
Associate a current event article which relates to government regulations or antitrust activities.
Mmachines of Newspaper vending are designed so that once you have paid for one paper; you could take more than one paper at a time.
Households make four kinds of economic decisions. Assume you have two households with the same income. Household A has one income earner and Household B has two income earners.
Identify how interest rates affect the cost of operating the business-Explain how business planning and operations are dependent on monetary variables other than interest rates
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