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What are the external effects ( externalities ) and why they can lead to inefficiencies and government intervention in the markets. Why are some government policies to manage external effects effective ( efficient ) while others are inefficient ( inefficient )
" A polluting steel mill in a perfectly competitive market will produce too much steel and pollution." Draw a graph to illustrate whether this statement is true, false, or uncertain. Be sure to draw the private and social marginal cost as well as the..
The international debt crisis of the 1970s and 1980s arose primarily from
Explain what determines the level of income, employment, output and prices in our economy. Do you think current monetary and fiscal policy is working to help the U.S. economy achieve the three economic goals of full employment, economic growth, and s..
Suppose that medical researchers discover a new drug which slows the aging process allowing the average life span in the United States to increase to 95 years of age. The lifecycle hypothesis suggests that
If the logic of classical economics was not at fault for being unable to fix economic problems of the real world, what was in Keynes' opinion? In what publication did Keynes first discuss what would become known as the multiplier? What two criticisms..
In the year 2011 the prices at which producers sold their output were quite real to those producers. If they had tried to sell their products at 1983 prices their customers and stockholders would have rightly thought the producers had lost touch with..
Discuss the ethical dilemma faced by employers trying to provide internet access for employees to do their work while trying to avoid cyber slackers and cyber loafers in 150 word essay.
suppose that there are two grades of professional football players. there are a restricted number of stars whom the
The shape of Canada’s production possibilities frontier (PPF) should reflect the fact that as Canada produces more trucks and fewer cars, the opportunity cost of producing each additional truck ______
Each potential bidder writes down a bid on a piece of paper. buyer with highest bid gets item and has to pay third highest bid. Is there dominant strategy equilibrium for this auction. Make sure you exhaust all possibilities.
Oak entertainment is the only movie theater in a small town. The firm can screen movies at a constant average and marginal cost of AC = MC = 10. The firm faces a demand curve given by: Q = 85-0.5P. Calculate the firms profit maximizing price and outp..
Suppose the marginal cost of production for a company is $6 at its current production levels. Suppose the price elasticity of demand is constant at -2 between prices of $10 to $15, if current prices are $10, is the company pricing at the correct opti..
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