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Suppose that after a lifetime of consuming fattening fast food every day you develop heart disease. The government must pay most of your medical bills through the Medicare system. Is it correct to say that your consuming unhealthy meals created no externalities? Might there be a justification here for the government to intervene in the market for fast food? Explain.
Assume that Consumption decreases by $25 million, Investment increases by $10 million, Government Purchases increase by $60 million, Exports decrease by $30 million and Imports decrease by $55 million. What is the net change in GDP in $million?
If a firm is producing where MPx/Wx > MPy/Wy, where x and y are the two inputs to theproduction process, what can the firm do to reduce costs but maintain the same output? Explainyour answer both intuitively and graphically.
In Krugman and Obstfeld's International Economics, 8e, Chapter 16, an involved argument is given showing that a permanent fiscal expansion will not affect output even in the short run. It seems to me that this is a saddle point stability argument in ..
How would each company determine the location of their facilities? List the specific needs and requirements of each company when determining location.
The government of a small open economy wishes to promote trade policies that will result in currency appreciation (increasing the real exchange rate). Would protectionist policies (higher tariffs and more quotas) or freer trade policies (tariff reduc..
In regards to ethics, "Right is right and wrong is wrong...Right?" Think about this statement/question in terms of individual ethics, societal ethics and business ethics. Does your standard of what is right and wrong change with circumstance?
In "Decision making in a democracy: the supreme court as a national policy maker," I have have the following question: How does Dahl describe the role of the Supreme Court? In what ways does the court serve as a policy making institution? is it too p..
The Australian national electricity transmission grid links eastern states including New South Wales, South Australia, and Victoria, but does not link Western Australia. How would price changes in Western Australia affect the other states?
If the university's school of engineering can earn 4% on it's investments, how much should be in it's savings account to fund one $5000 scholarship each year for 10 years?
Suppose there is a decline in marginal costs for one member of a cartel. What impact will this have on the incentive of that firm to cheat on the cartel agreement? Explain.
You are organizing a rock concert to benefit Amnesty International. The concert is to be held in a football stadium that has a seating capacity of 56,000. There are two types of seating: reserved and general.
In which direction will the scale effect change the firm’s employment of labor? c. Can you say conclusively whether the firm will use more or less labor? More or less capital?
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