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In each case, indicate whether the statement as given is true/false/uncertain and explain why. Points will be given for the explanation of your answer only. Write your answers as completely as possible.
1. If a polluting firm (for example, a steel producer) is also a monopolist in its output market, the appropriate pollution tax should be even higher than the standard Pigouvian tax in order to discourage both the firm’s pollution production and its monopolistic behavior.
2. In the case on an ambient pollution problem, where the government sets a target level of ambient concentration, a cost effective allocation of pollution is one where firms have the same marginal savings from emissions (or equivalently the same marginal cost of emissions reduction).
Illustrate what technologies are utilized. Describe the competitive environment within the industry. Is there a dominant firm.
Your income is $10 and you buy sodas for $1 apiece. One day a local bully starts demanding that you buy him a soda for every soda you buy yourself. Therefore, it now costs you $2 to get a soda. Illustrate the bully’s effect on your budget line. Illus..
A department store has offered you a credit card that charges interest at 1.05% per month, compounded monthly. What is the nominal annual interest rate (APR) for this credit card? What is the effective annual interest rate?
At what value of X will Q be at its maximum. Illustrate at what value of X will Diminishing Returns set in.
Consider an economy inhabited by overlapping generations of two-period-lived individuals, each of whom receives an endowment of y in the first period of life and none in the second. The population of newborns grows as follows: Nt = nNt−1, where n > 1..
What explains Singapore’s economic performance from 1965 - 1992? Why did Singapore outperform most other developing countries? What role did government policies play in Singapore’s economic development? What role did contextual factors (i,e., locatio..
1. For each of the following economic conditions, place an X in the table to indicate theappropriate range in the Aggregate Supply Curve
Explain the underlying basis for foreign direct investment, and discuss several factors that may contribute to it. What factors have likely contributed to the current U.S. net direct investment position?
The entry of new vendors in the market for ice cream will cause a: A.) movement down and to the left along the supply curve B.) movement up and to the right along the supply curve C.) shift to the right of the supply curve D.) shift to the left of th..
Suppose demand conditions in industries X and Y are identical but that productivity increases by 5% in industry X and 2% in industry Y. If economy-wide productivity and the average wage each rise by 3%, we should expect that:
Post and discuss why the tax credit enacted by the 2009 American Recovery and Reinvestment Act has no effect on the employees’ supply of labor using the concepts of consumer surplus, producer surplus and deadweight loss. Apply the effects of the Soci..
Choose a current or recent labor contract (collective bargaining agreement) negotiation in the U.S. airline industry. Summarize the state of the negotiations, major issues, and resolution, if any. Utilize industry publications and authoritative newsp..
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