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Bank modernization legislation changed what financial institutions are able to do on an individual basis. Much of their traditional role has remained unchanged, just transformed by their expanded services. Explain the traditional roles of financial institutions. Explain how those roles are still apparent in their modern functions.
One common criticism in the optimal taxation literature is the specification of the social welfare function. The optimal taxation literature (I have the Mirrlees framework in mind) relies on first specifying a social welfare function. what kind of po..
A firm has two factories, one twice as large as the second. As the number of workers at each factory increases. Illustrate which factory will experience diminishing returns first.
Mining is proposed for a wilderness area that provides two benefits: recreation (due to backpacking opportunities) and biodiversity (there are endangered wildlife and plants). What is the present value of mining in the area (excluding effects on recr..
Consider a firm using labor and capital as its only inputs. The price of capital is $40 where the price of labor (wage) is $60. Using 500 units of labor and 500 units of capital the firm is producing 1200 units of output. At this mix of input the fir..
Social life can be interpreted from one of three major theoretical frameworks. Describe the major points of each framework. List at least one sociologist who has been identified with each framework.
q.assume that we have a expenditure function of the form c 220 0.9timesyp where yp is permanent disposable income.
One unit of labor can produce either 4 tons of papayas or 1 ton of bananas. Elucidate type of economic analysis is limited to testable, verifiable statements.
Suppose the following system of equations: MAC = 60, 4E, MD = 2E, where E=level of emission per month. Solve for socially efficient equilibrium. Show it graphically. Compute total damage (TD) at this equilibrium.
Under a strict command-and-control framework, suppose abatement standards are set equally across polluters. Assume the total abatement target is 30 units. Show the cost implications using three graphs, each of a different polluter with a unique MAC c..
Elucidate its advantages and disadvantages and suggest appropriate policy prescriptions to deal with the potential shortcomings.
What criteria would you apply to determine where such a policy is or is not successful. Judging from your own stated criteria, was Japan's exercise successful.
Explain four major potential advantages of foreign direct investment for a developing country? Provide specific example of a developing country to depict at least two advantages
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