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It has been proposed that toll collection on the Massachusetts Turnpike, a key commuter route into Boston from the west, be discontinued. Proponents argue that tolls have long ago paid for the cost of building the road; now they just provide cash for tax bureaucracy. A number of economists are opposing the repeal of tolls on the grounds that they serve to internalize externalities. Explain this argument and discuss why the government often gets involved when finding solutions for externalities.
Choose two of the following economic systems(traditional,free market,or centrally planned) and explain which of the two systems you think does the best job of achieving each goal of the major economic goals each economic system tries to meet
the government provides national dental benefits for all U.S. citizens that cover 100% of the cost of all dental services. There are two effects of this policy. First, there will be an increase in the number of consumers of dental services. Second..
To maximize profits, a perfectly competitive firm should produce until: price is greater than average total cost.marginal cost is equal to price. average total cost is minimized. per unit profits are maximized.
John Maynard Keynes believed that wages may be inflexible in the downward direction. Consequently, an economyA) could get stuck in long-run equilibrium. B) could get stuck in a recessionary gap. C) could get stuck in an inflationary gap. D) would alw..
What do you see as the basic values that underlie this approach to solving the access to care problem? Do these values align with specific political perspectives?
Calculate the incremental profit that south park would earn by customizing its instruments and marketing them directly to end users.
For this question, you are to draw two of these alternate graphs. The first graph should show the situation for two women who have access to the same market wage rate, but one chooses to work in the market (an interior solution)
"Government spending is taxation. When you look at this, I've never heard of a poor person spending himself into prosperity; let along I've never heard of a poor person taxing himself into prosperity. Mr. Jones sends his daughter $500 for a semest..
This result proposes that private parties (consumers and producers) can solve the problem of externalities on their own. A tax imposed on imports is called:
Why does the assumption of independence of risks matter in insurance What would happen to premiums if the probabilities of houses burning were positively correlated Can you think of a situation where they might be negatively correlated
If you receive a free ticket to a concert, what, if anything, is youropportunity cost of attending the concert How does youropportunity cost change if miserable weather on the night of theconcert requires you to leave much earlier for the concert ..
The demand for illegal drugs is inelastic. Much of the expenditure on illegal drugs comes from crime. Assuming these statements to be correct, How will a successful campaign that decreases the supply of drugs influence the price
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