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People in a community are voting on how much of a public good should be provided. Assuming that each person casts a truthful vote, which tax structure is most likely to yield the socially efficient quantity?
a) None of the other answers is correct.
b) The Coase Theorem says that all of these will yield the same result.
c) Each person pays a tax equal to her MPB at the socially optimum level.
d) Each person pays an equal share of the total cost of the project.
e) Each person pays an amount based on her income.
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.
By spending $20K now, $25K three years from now, and $30K five years from now to upgrade presently owned equipment, a company can increase its annual revenue by $15K in years 1 through 5 and by $18K per year in years 6 through 10. At an interest rate..
What does Friedman mean when he says the Earth is becomming "hot, flat, and crowded?" Describe three of the key problems that Friedman identifies in the book and explin why they re important.
In what ways does the concept of the prisoner's dilemma contribute to our understanding of environmental problems? Regarding global warming, deforestation, and ocean dumping, what are the sources of the problems (political, economic, social)? What ma..
Patrick Cockburn Iraq Study Group's Cautious Appraisal Leutisha Stills Just How Progressive is Congressional Black Caucus.
Provide examples of two industries with different time frames for the short run. Clarify why this is the case.
Draw a supply- demand diagram of the federal funds market and show the effects of a Federal Reserve Purchase of $85 billion in US Treasury Notes during a Quantitative Easing Campaign after the Fed has already lowered its Fed funds target to 0 - .25%.
Electric Company is considering the purchase of a hillside ranch for possible use as a windmill farm sometime in the future. The owner of the 500-acre ranch will sell for $3,000 per acre if the company will pay her in two payments - one payment now a..
the last major conflict between the US army also Native Americans took place at
Think of another good that you have purchased recently Be specific (e.g. is it breakfast cereal in general or Cheerio’s cereal specifically). If the price of this item increases, how would this affect the quantity of the good that you consume? Would ..
In year 1 the price level is constant and the nominal rate of interest is 6 percent. But in year 2 the inflation rate is 3 percent. If the real rate of interest is to remain at the same level in year 2 as it was in year 1, then in year 2 the nominal ..
An investment that brings $40,000 two years from today is worth what present value in terms of today’s money with an interest rate of 25%?
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