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The United States has suffered several weather-related disasters in recent years, including Hurricane Katrina, Superstorm Sandy, and numerous devastating tornados and floods. These unfortunate events have led to many billions of dollars in property damage losses, it can take a frustratingly long time for victims of a huge storm to receive insurance money to rebuild, and many will never receive anywhere near enough money to cover their losses. Why, then, doesn’t the Federal government simply order the Bureau of Printing and Engraving to print enough extra currency to cover all of these property losses, and give it to the storm victims so they can get things back to the way they were before the disaster?
How do i find the original producer surplus? The imposition of a $1.50/unit excise tax on a competitive market raises the price buyers pay (inclusive of the tax) by $0.60/unit and reduces the volume of trade in the market from 2000 units/day to 1600 ..
Consider current on-demand digital media delivery trends, such as Apple TV, Netflix, and Hulu. Choose one company. Based on the material covered this week in the lectures and textbook, do you believe that this company has a viable revenue model? Why ..
Property taxes in a particular district are 4% of the purchase price every year. If you just purchased a $250,000 home, what is the present value of all the future property tax payments? Assume that the house remains worth $250,000 forever, property ..
Identify the nature of resource cost structure and the practical significance of different costs and explain the factors influencing optimum size and the significance of demand and supply relationships.
What type of risk behavior does the person exhibit who is willing to pay $5 for the chance to bet $60 on a game where 20% of the time the bet returns $100, and 80% of the time returns $50? Explain
What do Gordon and Golden mean by the” great compression”? When did it occur? Has it continued? Can you give a reason for both events? What are the implications that Gordon highlights in terms of productivity?
The demand for the product of a business is given by q = 50 - 2p. If the price of the product is p = 10 dollars, the revenue is
Maintenance costs on a bridge are $5,000 every third year starting at the end of year 3. For analysis purposes, the bridge is assumed to have an infinite life. What is the Capitalized Equivalent (CE) cost of these infinite payments, assuming an annua..
With the Federal Open Market Committee seeming to have such a positive outlook, how do you think this will affect the economy? Do you agree that the workforce /labor markets will continue to see gains?
If elasticities for a bottle of water are -0.8 and -1.2 in two different locations and marginal cost is the same, which location is likely to charge higher price for the bottle of water?
Snoopy and Woodstock both need to have some letters typed and some carpets vacuumed. Calculate the opportunity costs of both activities for both Woodstock and Snoopy. Demonstrate that they could both be made better off by trading tasks and specializi..
Suppose that inflation in Australian was expected to equal 6 per cent in 2015, but prices rose by only 3 per cent. How would this unexpectedly low inflation rate help or hurt each of the following?
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