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Explain why zoning laws, which allow certain land uses only in specific locations, might be justified in dealing with a problem of negative externalities.
Explain why in areas where buildings sit close together tax breaks to property owners for installing extra fire prevention equipment might be justified in view of positive externalities.
Explain why excise taxes on beer might be justified in dealing with a problem of external costs.
College enrollments increased at the same time that average tuition rose dramatically. Does this contradict the law of downward-sloping demand?
Compute the sizes of the consumer and the producer surpluses at the equilibrium price and quantity derived in (1).
What is the new profit maximizing output level and how many workers are hired at this level
Assuming that poor and rich countries have the same production function, illustrate how the poor country will converge with the rich country. Describe how this mechanism works. 2. In the data, countries with low living standards have capital-to-wo..
In 1998, Americans smoked 470 billion cigarettes. The average retail price was $2 per pack. Statistical studies have shown that the price elasticity of demand is -0.4, and the price elasticity of supply is 05. Using this information
What is the most common way modern labor unions use to raise wages? This will result in the fewest jobs lost if labor demand is elastic or inelastic?
A stem cell research project requires expensive specialized laboratory equipment. For this purpose, three pieces of equipment and their associated cash flows (listed below) are under consideration. One piece of equipment must be selected.
Purpose the market demand curve for a product
febreze f and glade g are two brands of air freshener. consumers consider the product a homogeneous good but the market
Could a future advance in technology allow production beyond the current possibilities curve Could international trade allow a country to consume beyond its current possibilities curve Is production at a point outside the production possibilities c..
suppose that Ike is loss averse. In the morning, Ike's stock- broker calls to tell him that he has gained $1000 on his stock portfolio. In the evening, his accountant calls to tell him that he owes an extra $1000 in taxes.
Some fields have large enough quantities of both oil and natural gas that coordination must be achieved for the production of both, rather than oil a in our examples. Will fields with both oil and gas have greater difficulties in unitization.
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