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In cost-benefit analysis, the government should intervene as long as
A. The benefits of the government intervention exceed the costs.
B. The government corrects market failures despite government failure.
C. The value of government failure exceeds the value of market failure.
D. The government corrects market failures without government cost.
An alternative has a discounted project cost of $4,185,000 with no salvage value. The estimate was in constant dollars and the discounting used mid-year factors. While the period of analysis is 5 years, the alternative only provides benefits for the ..
You hold an auction on eBay and expect two bidders to show up. You estimate that each bidder has a value of either $5 or $8 for the item, and you attach probabilities to each value of 50%. Your own value for the item is zero. You can set a reserve pr..
Use the following information for the next 10 questions. You should draw a graph that depicts the situation below and use your picture to answer the questions. Assume that wages and prices are sticky and that we start at a long-run equilibrium. After..
Whether the product market or the labor market, what happens to the equilibrium price and quantity for each of the four possibilities: increase in demand, decrease in demand, increase in supply, and decrease in supply.
Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product. With a PcPt per unit tariff, the quantities sold by foreign and domestic producers respectively will be
Provide three examples of scarcity that illustrate why even the 1,210 billionaires in the world face scarcity. 2. Label each entry in List 1 as dealing with a microeconomic topic or a macroeconomic topic. Explain your answer. Use the following inform..
Suppose the market for milk. For each of the following events, state whether it affects supply or demand, which direction supply or demand shifts, the effect on price, and the effect on quantity.
An economy's marginal propensity to consume out of disposable income is 0.75, its marginal and average tax rate is 0.15, and its marginal and average propensity to import is 0.15.
Under what circumstances would a monopolistic firm be economically more efficient than a group of small, competitive firms? If there are such monopolies, what are the drawbacks and how could they be corrected?
Who was responsible for the global financial crisis of 2007-2009? Free-Market capitalism, government intervention, or a combination of both? Identify the causes of the crisis, the steps the private and public sector took to resolve it, and what leade..
Bid-ask spreads: Suppose you contact your currency dealer at Credit Agricole and obtain the following quote on US dollars, priced in Swiss franc (SF).
What is the value of an investment that will pay investors 2,980 dollars per year for 7 years and will also pay investors an additional 4,970 dollars in 1 year(s) from today if the expected return for the investment is 7.45 percent per year and the f..
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