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"Suppose we have an agricultural valley 100km by 50km, with a polluting electricity power plant. The power plant causes pollution problems on a narrow strip of land downwind of the plant, and within this valley 10km in length and 500 m in width, but no problem outside that area. The total effect of pollution is to make crop land less productive. If we were to clean up the pollution, would we expect land prices to increase? Where? Would we expect wages to decline? Would the changes inland prices and/or wages filly reflect the benefits pf cleaning up pollution? Why or why not?”
Compare and contrast the different stages of the business cycle and how inflation and unemployment vary via these different stages. Then discuss the appropriate fiscal and monetary policies to address inflation and unemployment.
Critically analyze the pros and cons of putting a price ceiling on prescription medicine. Make sure to use concepts from both chapters seen this unit such as government intervention, inefficiencies, price elasticity, etc. in your answer. In the first..
If consumers are rational, they will attempt to equate the "bang for the buck" of various items that contribute to their satisfaction within the constraints of some budget. Equate the ration of ( price / marginal utility ) for each item in their budg..
Explain the connections between opportunity cost and the production possibilities frontier.
The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats, the price is $1 million and 240 luxury boats a week were bought. Now luxury boats are taxed at 20%. What is the price that ..
Consider the following data. Assume that the fixed cost of the 3rd unit of output is $9.00. Calculate average fixed cost, average variable cost, average total cost, marginal costs, total varibale cost and toal cost for each unit listed in the chart.
you borrow 10,000 pesos, you earn income in dollars, the dollar depreciates against the peso, you must pay back the loan in pesos. you borrow $10,000, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in do..
Starware Software was founded last year to develop software for gaming applications. Initially, the founder invested $800,000 and received 8 million shares of stock. Starware now needs to raise a second round of capital, and it has identified an inte..
What is the contribution margin per unit? What is the contribution margin ratio? What is the variable expense ratio? If sales increase to 1,001 units, what would be the increase in net operating income?
If the price of good A decreases by 5% and the quantity demanded of good B increases 10.2%, find the cross price elasticity of demand. Are the goods substitutes or complements? Why?
the participation rate 60 percent, 200 million people 16 years or older are not in the labor force. How many people are in the working-age population in this economy?
Consider a numerical example using the Solow growth model, suppose that F(K,N)=K^0.5N^0.5 with d=0.1,s=0.2,n=0.01,and z=1, and take period to be a year. Determine capital per worker, income per capita, and consumption per capita in the steady state. ..
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