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Pedro loves playing rock music at high volumes. Mario loves opera and hates rock. Unfortunately, they are next door neighbors in an apartment building with paper thin walls.
a. What is the externality here?
b. What command-and-control policy might the landlord impose
The government finances its purchases through lump-sum taxes on consumers, where T denotes total taxes, and the government budget is balanced every period, so that G = T. The solution for steady state capital per worker k.
During the Great Depression, federal government swung into action to help farmers. In 1933, it established a system of price support for several agricultural products.
Briefly explain which of the following policies are likely to increase the rate of economic growth of a nation and government increases public spending to finance a conflict with a neighboring nation
Who bears the cost of import barriers protecting a job where the industry employing labor has lost its comparative advantage? Consider the use of tariffs on steel imports into the U.S. during the recent Bush Administration.
Ilucidate the estimated demand for the company's product. Determine the point cross price elasticity.
For a perfectly competitive syrup producer whose average total cost curve does not change, an economic profit could turn into an economic loss if;
It cannot be as the inflation by definition real wages have factored inflation in.
An $85 billion sequester (called automatic federal government spending cut) that went into effect on March 1, 2013. This was an across-the-board spending cut in federal government's various existing programs and services, including maintenance of ..
Government initally increased spending from 50 million to 100million . Household responded by increasing spending from 20 million to60 millio
Find the equilibrium price and quantity. Find the elasticity of demand and the elasticity of supply, evaluated at the equilibrium price and quantity. Is demand elastic, inelastic, or unit elastic? Is supply elastic, inelastic, or unit elastic?
If a industry wants to raise total sales revenue. What happens to the demand for beer if the price of soda falls.
Consider the Bertrand model with no product differentiated in which each firm has a positive and fixed sunk cost F and zero marginal cost. What are the equilibrium prices and profits? Illustrate your result on a proper diagram.
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