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(a) Explain the following practice/policy in terms of externalities.
(i) Charitable donation over HK$100 is tax deductible in Hong Kong.
(ii) Government increases the penalty for the drivers who run the “red light”.
(b) Why are some of the products, such as gasoline, taxed more heavily than other goods such as food? Explain your answer in terms of externalities.
(c) How can patent encourage invention?
Can we conclude that an individual participating in the program would be worse off if provided with a cash grant of $50 instead of the viagra?
The future of cities in the united states and in other countries will be determine by their abilities to benefit from the _____________ and to minimize or counterbalance the __________________.
Please describe the actions of the economic actors in the economic circular flow diagram and the physical and monetary transactions that occur in each market of circular flow diagram. What is the circular flow diagram describing? Please explain the t..
Illustrate what is the level of consumption at the equilibrium level of income.
Describe how McDonald's and Wal-Mart elucidate changes in the macroenvironment affect individual firms and industries through the microeconomic factors of demand.
Sensitivity to a minority group is as important as being aware of and using the language of that group effectively. Insensitivity towards any group can cost an organization money and opportunity. What do you think the PR department should do inside t..
Solve graphically: Show an increase in real interest rates that decreases quantity supplied of savings. (m2=0)
Use indifference curves to distinguish between income and substitution effects, using the above techniques explain why the demand curve slope downwards, What are the main criteria for designing a tax system, To what extent do you think the national..
Assume that the wholesale skim milk market is perfectly competitive. Suppose demand is described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium quantity?
In 1976 independent Texaco retailers file suit against Texaco. In 1990, the Supreme Court of the United States found that Texaco had indeed violated antitrust law. Illustrate which law do you think Texaco was found guilty of violating.
Assume to John Smith gets promoted to a job to cause two changes to occur simultaneously: John earns a higher wage also safer environment
The government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially before multiplier effects.
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