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Consider a MONOPOLIST that vents an ozone reducing chemical into the atmosphere as a consequence of their production activities.
A. Is this outcome efficient? Explain with the help of a diagram.
B. Does the monopolsit have an incentive to reduce their pollution? Explain with the help of a diagram.
C. Modern economists suggest 2 solutions for the pollution problem above. Explain how pollution tax (use a diagram) and an emission permit trading scheme can both "solve" the problem of pollution.
Account for widespread suspicion—especially on the political left, but it can and definitely used to show up on the political right as well—that praise of the market system by economists is greatly overblown?
What is the concept of Balance of Payment of a State? How would you distinguish the composition of the current, capital and monetary accounts of BOP? Differentiate between BOP and Balance of Trade between two countries.
The following are hypothetical data for the U.S. balance of payments. Use the data to calculate each of the following:
In the country of Drazah Larom (moral hazard spelled backward), health insurance is nonexistent and all medical markets are perfectly competitive. Use supply and demand analysis to explain the impact of the following changes on the price and output o..
If the incremental federal income tax rate is 34% and the incremental state income tax rate is 6%, what is the effective combined income tax rate (t)? if the satiate income taxes are 12% of taxable income, what now is the value of t?
If a nation is selling less goods and services to foreigners than it is buying from them, then on net it must be buying more assets abroad, then the value of domestic assets purchased by foreigners. By itself, the purchase of a U.S. bond by a foreign..
Describe the Schumpeterian notion of "creative destruction"
Marcus’s utility function is U(X, Y) = (X + 2) (Y + 1). a. Write an equation for the indifference curve that goes through the point (2, 8). Graph the indifference curve for U=36 c. Let Px=Py=1 and m=11. Draw Marcus’s budget constraint in the graph fr..
Suppose you want to infer expected future exchange rates in a less-developed country that has free-market-determined interest rates but does not have a forward exchange market. Is there any or way of inferring expected future exchange rates. Unde..
Clear Channel, an owner of radio stations with the Top 40 format, recently bought rock concert promoter Live Nation. How would this affect prices for concert tickets or rates for radio programming?
With reference to a carefully drawn graph, provide a detailed analysis of the impact of this decrease on equilibrium price and equilibrium quantity in the market for new cars in the United States.
In 2012, WVU president James Clements’ base salary was $775,000. The head football coach, Dana Holgorsen’s base salary was approximately $2.4 million. Why is the football coach paid so much more than the president? Should the head football coach be p..
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