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a) Using an example explain why negative externalities lead to inefficient overproduction and discuss one way government can ensure a more efficient outcome.
b) Discuss using an example what are public goods and why does it lead to a free rider problem.
c) Why is fishing in the ocean, where there are no well-defined property rights, a concern regarding our ability to ensure sustainable use of our fishing stock? Research what is being done in New England coastal fisheries to ensure sustainable cod fishing.
Contrast the static and dynamic views of monopoly and the policies appropriate for each. Please provide a detailed answer.
To examine the implications of selecting various discount rates, reconsider the water filtration system example in the text but change the dis- count rate from 10 percent to 5 percent. Find the present value of the system.
A small shop sells a variety of smartphones. Suppose we know that the battery life of smartphone a is normally distributed with a mean of 15 hours and a standard deviation of 6.4. also suppose we know that the average battery life of smartphone b is ..
what are the differences between real and nominal rates? explain why this is important to induce action on the part of
When measuring costs, it is important to keep in mind of one of the Ten Principles of Economics: The cost of something is what you give up to get it.
Using the order condition of identi?cation, determine which of the four equations are identi?ed, either exact or over.
suppose that currency in circulation is 600b demand deposits are 900b and excess reserves are 15b. the required reserve
Suppose that you are the general manager at a plant that will be closing in one year. It is a small plant, and so is not subject to the Worker Adjustment and Retraining Notification Act (WARN). Must you give your employees advance notice of the closi..
Why are banks currently keeping large quantities of excess reserves? What are the monetary policy implications of banks keeping large quantities of excess reserves? In particular how does it change the efficacy of open market operations?
According to the Neoclassical School of Economics, the market institution should ensure:
An aerodynamic three-wheeled automobile (the Dart) runs on compressed natural gas stored in two cylinders in the rear of the vehicle. The $13,000 Dart can cruise at speeds up to 80 miles per hour, and it can travel 100 miles per gallon of fuel.
How does the stage of pregnancy affect the morality of abortion?
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