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Consider the problem of carbon dioxide emissions. We will abstract away from the problem somewhat, assuming there are polluter and consumers in two regions OECD (O) and the rest of the world (R). Suppose the marginal cost of controlling CO2 emissions is $10 per ton of emissions. Let the marginal willingness to pay for pollution reduction is 13-Q for (O) and 12-2Q for (R) where Q is the amount of pollution deduction. The UN is allowing for two proposed methods for controlling CO2 emissions, both involving polluters paying for the smash the cause. Proposal A engrosses the polluters paying for the damages to each region for the pollution generated. Proposal B involves the polluters in each region independently negotiating pollution deductions, assuming the other region is not undertaking pollution reduction.
Suppose you have $500 in savings when the price level index is at 100. (a) If inflation pushes the price level up by 10 percent, what will be the real value of your savings?
illustrate what would be the government spending multiplier. What would be the taxation multiplier.
Describe why some long-run average cost curves are steeper on the downward side than others.
The economy has recently turned around, and one of your colleagues suggests that you could hire 25 people for $50,000 per employee to do the sales job as independent agents at a cost of goods sold (COGS) of only 0.5%. What concerns might you have abo..
Discuss the role and the effect of reputation on cooperative behavior by selfish individuals. Discuss the biological reason for cooperative behavior with relatives.
Illustrate what do you think about the relationship between tort law and commercial productivity in the United States. Do you believe that companies should enjoy greater protections against potential tortfeasors.
Explain how to encourage people to spend more to increase aggregate demand and create employment possibilities.
Estimate amount of former foreign-monopoly profit that is transferred as tariff revenue to home nation when home nation imposes tariff.
Illustrate what is the effective rate of protection for sneakers.
What is value of net domestic product. What is value of net investment.
A company is considering a proposed new plant that would increase productive capacity. Which of the following statements is CORRECT?
Compute the price of a bundle containing 100 units of good X, 150 units of good Y, and 25 units of good Z.
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