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Question: Imagine that you are trying to decide whether to cross a street without using the designated crosswalk at the traffic signal. What are the expected marginal benefits of crossing? What are the expected marginal costs? How would the following conditions change your benefit-cost equation?
a. The street was busy.
b. The street was empty and it was 3:00 A.M.
c. You were in a huge hurry.
d. There was a police officer 10 metres away.
e. The closest crosswalk was 1 kilometre away.
f. The closest crosswalk was 5 metres away.
Show that, with a linear demand curve, the imposition of a per-unit tax on a monopoly will cause price to rise by less than the tax. Would this be true for a constant elasticity demand curve?
Smith can produce with or without a filter on his smokestack. Production without a filter results in greater smoke damage to Jone. The relevant gains and losses are as follows: Gains to Smith: $200/wk with filter; $245/wk without filter.
Explain how our allocation of time resembles the way the nation or other firms allocate scarce resources (land, Labor, Capital and Entrepreneurship
Free-Market capitalism, government intervention, or a combination of both? Identify the causes of the crisis, the steps the private and public sector took to resolve it, and what leaders should do to keep it from happening again. Remember, banks a..
The State of Glottamora has $100 million remaining in the budget for the current year. One alternative is to give Glottamora a one-time tax rebate. Alternatively, two proposals have been made for state expenditures of these funds.
Re-draw a money demand and money supply diagram showing the initial conditions and label as point A and
As an illustration of the difficulty in identifying monopolies, try and decide which of the following are monopolies: British Telecom; your local evening newspaper; a water company; the village post office; the Royal Mail; Interflora; the London ..
Four separate cases involving similar fact situations were consolidated as they presented the same constitutional question. In each case, police officers, detectives, or prosecuting attorney's took a defendant into custody and interrogated him in a p..
Explain the impact of China, as an emerging economy, on the global economy today. How is the U.S. economy affected by monetary policy in China and the current USD/yuan exchange rate?
You are cultivating a strain of E. coli for research and inoculate a flask of rich media with 50 cells. Assuming an exponential growth rate of 2.5 cells/hour and that you need 1,000,000 cells for your analysis, how long will you need to culture t..
If the MPC = 0.80 and taxes are increased by $1,000, the Keynesian model predicts the change in equilibrium GDP will be:
In light of the theory of comparative pros are any restrictions on free international trade advantageous
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