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Definitions of externality and public goods, Source of inefficiency under externalities and public good, find the socially optimum output if there is negative externality and suggest policies to attain this social optimum. Be able to discuss why social optima are hard to achieve.
Consider a Stackelberg game with three firms (1, 2 and 3) where firm 1 moves first and firm 3 moves last. What quantities will they choose if they have zero costs and the demand curve is p = 100 - q
Elucidate how he should use information on the marginal catch at each lake to accomplish this goal. Illustrate what division on the 40 fishers would you recommend.
Some reject fiscal stimulus measures in all policy forms. Explain what the various limitations are to a successful fiscal stimulus. Be sure to consider the damaging activities and decisions of (a) private corporations, (b) commercial banks,..
Illustrate the stated direction of recent monetary policy. What recent actions have the Federal Reserve taken to confirm that direction
A) Calculate the country's steady state level of output per worker. B) Now suppose k is equal to 400. Is the country at its steady-state level of output per worker, above the steady-state or below the steady state
Utilize the Heckscher-Ohlin and factor proportions framework with two factors, skilled and unskilled labor.
Utilizing a separate supply and demand diagram for each part, illustrate the effect of the price of the yen in terms of dollars of each of the following.
Suppose that a small town uses a referendum to overcome free ridership problem & determine how its residents might value a new water filtration system for its public water supply.
Raymond producing is a privately held corporation; all long-term finances are from the Raymond brothers in the form of equity interests.
Explain what happens to the nation's aggregate supply curve, the short-run equilibrium level of output, and the price level if:
"Fewer and fewer Americans support our government's trade policy. They see a shrinking middle class, lost jobs and exploding trade deficits. Yet supporters of free trade continue to push for more of the same - more job-killing trade agreements."
If government pays a subsidy in a market and households keep most but not all of the subsidy payment then we know a) the demand curve is perfectly elastic. b) the demand curve is relatively more elastic than the supply curve.c) the demand curve is re..
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