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At what point should the government intervene in the delivery of health care (other than Medicare and Medicaid)? Should this intervention be at a state level or a federal level? Why? Provide at least two examples of when the government should become involved, and two examples of when they should not.
Assume that two power plants, Firm 1 and Firm 2, release arsenic in a small urban community that exceeds the emissions standard. To meet the standard, 40 units of SO2 must be
Suppose an Entrant and an Incumbent are playing an entry game. The set-up is as follows: The Entrant first decides whether to enter. The Incumbent moves second. If the Entrant
Explain how a monopolist uses price discrimination in an effort to increase its profits. In your answer, you should differentiate between first, second and third degree price
(Population growth and technology growth) Consider an economy that is described by the production function Y= K^1/2 (LE)^1/ 2. Moreover the depreciation rate of capital is (de
The market supply and demand functions for a product traded on a perfectly competitive market are given below: QD = 40 – P QS = -5 + 4P Based on this information, Calculate th
A simple model of search. Consider an agent who lives two periods. He is unemployed at the beginning of the first period and has a wage offer of w. If he accepts the wage offe
Since 1979, low income recipients have been given food stamps without charge. However before 1979, people bought food stamps at a subsidized rate. For example, to get $1 worth
There is a debate about whether sterile hypodermic needles should be passed out free of charge in cities with high drug use. Proponents argue that doing so will reduce the inc
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