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Consider a corrupt provincial government in which each housing inspector examines two newly built structures each week. All the builders in the province are unethical and want to increase their profits by using substandard construction materials, but they can’t do that unless they can bribe a housing inspector into approving a substandard construction materials, but they can’t do that unless they can bride a housing inspector into approving a substandard building. a) If bribes cost $1,000 each, how much will a housing inspector make each year in bribes? b) There is a provincial construction supervisor who gets to hire all of the housing inspectors. c) Corrupt officials may have an incentive to reduce the provision of government services to help line their own pockets. d) What if reducing the number of inspectors from 20 to 10 only increased the equilibrium bribe from $1,000 to $1,500?
Does the law of diminishing marginal returns apply to this firm's production process. If so, explain why and find the quantity of labor at which diminishing marginal returns.
Trading in foreign currencies has an effect on world trade. For example, a rise in the value of the local currency due to daily flows vis-à-vis other currencies makes exports: Positive CoO (country-of-origin) effects might best be associated with:
The operating cost of a broiler is $20,000 per year for years 1 and 2 and then it increases by 6% per year through year 10. What is the equivalent uniform cost of the broiler (years 1-10) at an interest rate of 9% per year
What is the diamonds water paradox and how is it explained?
You sign a security agreement that describes the collateral. The bank does not file a financing statement. Has the banks security interest attached? If so, when?
Illustrate what should be the construction level if fixed costs rose to $48,000 per month?
Calculate the constant debt-GDP ratio that the country can achieve if the country runs a primary budget deficit of 3%. Is this debt-GDP ratio stable.
Delineate which market participants you believe benefited from the final court decision and whose interests were harmed.
Consider the monetary intertemporal model with investment. Analyze a temporary, positive TFP (z) shock and a permanent increase in Ms, respectively. How do the implications di?er? What assumptions on the economic behavior of households and ?rms do th..
In an" Economics in Action" section of ch.11,Krugman/Wells talked about "The Mythical Man-Month," What industry and job did this section talk about? What pitfall of logical thinking was described in the section? Why did this problem arise?
A study was done of all homicide convictions in the State of Florida between 1976 and 1980 in order to examine if the application of the death sentence was racially biased. “Race of the suspect” is a lurking variable in this situation. “Race of the v..
The average adult produces $75,000 of output per year, Explain how much output is lost as a result of deaths from secondhand smoke, according to the News given below.
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