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Assume the United States government determines that the cigarette smoking creates social expenses not reflected in current price of cigarettes in the market. A study has recommended that government can correct for the externality given the effect of cigarette consumption by paying farmers not to plant tobacco used to manufacture cigarettes. Assuming that the government is correct that cigarette smoking creates external costs, evaluate where the study’s recommended policies might help correct this externality. Why does the presence of externalities not reflect society’s costs and benefits in the market? Why are markets considered to fail the appropriate allocation of resources that are needed in the market? When answering the question, make sure to evaluate it from the different stakeholders that are present in the market.
Explain how each of the following would cause the yield curve to shift if between now and next year:
Decreases aggregate quanity demanded among a stationary aggreate curve. E rases the equilbrium level of output and employment.
Illustrate what factors shift your demand for goods . Give an example of how a demand determinant shifted your demand for a good.
Illustrate which national financial policy programs are best for addressing the problems in the U.S. economy
Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?
Illustrate Wwat could it or should it have done differently. Please provide references to support your position.
Illustrate what are the concerns of common citizens on personal data such as medical transcriptions and credit card information in a foreign country where there are less stringent regulations on privacy.
Find out at least two sources to help you solving the subsiquent questions about the air line company.
In an article about the financial problems of USA Today, Newsweek, reported that the paper was losing about $20 million a year.
In the 1970s people had become accustomed to high inflation. In 1979, Bank of Canada decided to fight inflation and decreased the money supply growth rates.
Assume Smith owns and works in a bakery located next to an outdoor cafe owned by Jones. The patrons of the outdoor cafe like the smell that emanates from the bakery.
Explain how much should the firm charge to earn the maximum profit during off peak times.
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