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The private marginal benefit for commodity X is given by 50-5X, where X is the number of units consumed. The private marginal cost of producing X is constant at $10. For each unit of X produced, an external benefit of $5 is imposed on members of society.
What type of externality is being described? In the absence of any government intervention, how much X is produced? What is the social efficient level of production of X? What is the gain to society involved in moving from the inefficient to the social efficient level of production? Please draw a graph that shows these two points of production as well as the deadweight loss. Suggest an approach that the government could take that could lead to the efficient level. How much would such an approach cost or benefit government in the form of increased government tax revenues or increased government costs?
Find the gradient of Q b. Find the Hessian of Q c. Denote the initial K = 10,000
Summarize Kuznets's Inverted-U Hypothesis and discuss the conceptual merits and limitations of this hypothesis, especially in reference to African countries.
Consider an economy that begins with output equal to its natural level. Suppose the economy experiences a negative shock to the banking system. (a) Use the AD-AS and IS-LM models to show the effects of the shock on the AD, AS, IS, and LM curves. Be s..
the probability of damage between $10,000 and $25,000 to be.12 If the company wants to make a profit of $200 above the expected cots, what should be the price of the policy?
When looking at inflation, you will find that this is measuring how much prices change. How does this influence the unemployment rate?
Discuss/justify the following statement: “When a change in a country’s nominal interest rate is caused by a rise in the expected real interest rate, the domestic currency appreciates. When the change is caused by a rise in expected inflation, the cur..
Suppose the government increases both taxes and government purchases by $10,000. Assuming that the marginal propensity to consume is 0.75, calculate the change in private saving, government saving, and total saving. Then draw a graph of the loan able..
Which of the following are not assumed by economists to control for various factors that are not relevant or important to understand and analyze using a model a specific real life situation that economists are concerned with in a given situation?
Elucidate how much the money supply will increase in response to a new cash deposit of $500 by completing the accompanying table.
What is the effect of a trade surplus? What is the effect of a trade deficit? How do trade deficits and surpluses affect the industry in which you work?
What question for appeal did the High School consider?
Explain how many seats should be protected for full-fare passengers.
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