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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?
How are gifts and grants handled in the balance of payments? What does it mean for a country to experience a capital inflow? Is this associated with a surplus or a defici
Refer to the following supply and demand curve diagram. a. Starting from an initial equilibrium at E, what shift or shifts in supply and/or demand could move the equilibrium
Suppose that G is reduced by 500. Compute private saving, public saving and national saving and new equilibrium interest rate Suppose that T is increased to 3,000. Compute pr
Given that the U.S. is not a closed economy, which additional component(s) of GDP could be affected (and in which direction) under the hypothetical assump¬tion that the rest
Enron executives were charged with numerous counts of corporate fraud and corruption. Among the charges was "insider trading", which involves the trading of a corporation's
plaintiff Betty Dukes, started working at Walmart in 11994, was not promoted into the ranks of salaried managers. She was always told her time would come, that there were no
If the term premium is equal to half a percent times the number of years to maturity of a bond for times to maturity of two, three, and four years, what are the interest rat
Write at least a paragraph that summarizes Ireland's economic condition. Include in your paragraph any relevant information regarding the Economic Freedom Index and how it m
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