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Consider smoking in a classroom, where students have the right to clean air. What types of externality does smoking in a classroom convey? Explain. How could this externality be solved according to Coase Theorem? Explain. How would it be solved using taxation/subsidies? Explain.
Starbucks is hoping to make use of its excess restaurant capacity in the evenings by experimenting with selling beer and wine. It speculates that the only additional costs are hiring more of the same sort of workers to cover the additional hours and ..
Suppose we have the following market supply and demand schedules for bicycles: Price Quantity Demanded Quantity Supplied $100 70 30 $200 60 40 $300 50 50 $400 40 60 $500 30 70 $600 20 80. Plot the supply curve and the demand curve for bicycles. What ..
Assume an economy with an aggregate production function of the form Y = 1.5K. If the nation’s population grows at 5%, the rate of depreciation is 3%, and the savings rate is 8%, what is the steady-state output per capita level?
How do the GDP per capita change after accounting for price indices. Why is it important to use price index adjustments.
You are considering expanding your product line that currently consists of skateboards to include gas-powered skateboards, and you feel you can sell 9,000 of these per year for 10 years. What are the annual free cash flows associated with this projec..
If homeowners purchased a $250,000 home with a zero-down, interest-only mortgage, and the value of the home subsequently fell to $200,000, in order to sell the house and move to another city, the homeowners would be required at closing to pay
BUECO5903 BUSINESS ECONOMICS Explain why some people 'lose' from inflation and why do some people 'win' from inflation and how did the classical economists interpret long-run unemployment?
All farmers in Trivialand are self - employed and sell all of their wares to Super Duper. Elucidate the costs incurred by all of Trivialand's busines.
information effect the calculation of the inflation rate If so, Elucidate how. Does McDonald earn an accounting profit? Does he earn economic profit
The economys business cycles are not well synchronized with any of the world's largest economies and policymakers.
To determine which of the output levels represents a macroeconomic equilibrium.
Federal Reserve lowers the required reserve ratio from 0.10 to 0.05. How does this affect the simple money multiplier.
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