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In the 1990 Clean Air Act Amendments, Congress and the EPA rely on the automobile industry to develop a cleaner automobile. At the same time, the government imposes a relatively minor federal tax on gasoline.
a. Do you see any problem with the implicit signals the federal government is sending to American auto manufacturers and to American car drivers through these policies? Briefly discuss.
b. Formulate a hypothetical economic policy to motivate automobile manufacturers to advance the technology of cleaner motor vehicles.
Consider the following market demand and supply functions for a commodity Qd = 20000 - 400 P , Qs = -4000 + 800 P - Determine the equilibrium price and quantity.
How does the federal reserve have a high degree of instrument independence? If it has a specific mandate from Congress to achieve "maximum employment and low, stable prices," then how does the Fed have goal independence?
Review the information available on the following websites. You will use this information to answer the questions below:Overview of BLS Statistics on Unemployment: http://www.bls.gov/bls/unemployment.htmUnemployment, total (% of total labor force): ..
Why did the Europeans try to protect their auto industry from Japanese imports, and do you think this was fair to European consumers?
An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price of $2/unit of food.
Why do people hold bonds rather than larger savings account or checking account balances Under what circumstances might they change their portfolios, moving their funds out of bonds and into bank accounts
What would happen to the short-run equilibrium price and quantity of magnesium if a major (economically large) magnesium mine had to close due to environmental regulation? Assume the supply is elastic and demand is inelastic.
To take advantage of high prices for snow shovels during a very snowy winter, Alexander Shovels, Inc., decides to increase output and the success of Red Bull leads more firms to begin producing energy drinks.
Define the terms listed below. You should write a paragraph explaining each concept as if you were writing for your 15-year-old sibling.
What is the expected value of the lottery and What level of utility does she achieve if she does not participate in the lottery? Indicate that point in the graph.
Explain how natural monopolies cause market failure? How is the deadweight loss associated with this form of market failure measured?
Differentiate between financial and cost accounting as well as its opportunities and applications - Discuss and explain how cost management information is developed and used within the organizations information value chain.
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