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This question is based on The Economist Magazine's Schools Brief: State and Market - which has its own module in Etudes
Government intervention to correct a market failure:
A. has become more important as the damage of market failures has risen
B. has diminished in recent years - Which is a good thing.
C. faces the problem of the regulators being captured by the industry they are regulating
D. has diminished in recent years - which is a bad thing
Frankie and Johnny can both earn a wage rate of $10 per hour and, coincidentally, both have $100 per week in non-labor income. Assume that both have T = 100 hours per week to allocate to leisure and work. Frankie chooses to work 40 hours per week. Us..
The multiplier, or the change in equilibrium GDP that will occur per any change in spending, can be determined by calculating the fraction of any change in income that survives all of the leakages and goes on to start the next round of spending.
Monsanto, Corp paid dividends of $2.80 last year. Over the next three years the earnings and dividends are expected to grow by 10% per year. Thereafter, assume that the dividends will grow at a 5% rate forever. If investors required return on Monsant..
When several people have to decide about a single yes/no issue*, the natural decision rule to use is the majority rule. it is possible that the majority's opinion will be accepted on all topics and the minority's opinion will not be accepted on any t..
Elucidate why a currency depreciation leads to an improvement in a countries balance of trade.
Illustrate what will happen to equilibrium price As a local cable company offers cheaper pay- per-view films, local movie theaters have more unfilled seats.
Mary is in equilibrium. The MUa =6, MUb =12, Pa=2, what is the price of b? Zach is in equilibrium. The MUa=2, MUb=8, what is the price of a in terms of the price of b? What is the utility maximizing or optimization condition?
Real wealth which capitalists pull out of market must somewhere enter market. What is this hidden mechanism.
Why do you think the specific industries you selected are highly concentrated?
Assume that you own a 10-acre plot of land that you would like to rent out to wheat farmers.
From the items below that will no longer be needed, which one is most likely to result in the most costs savings?
Sterling, Inc. is a manufacturer of state-of-the-art computers. For the past ten years, Sterling has acquired all of its microchips from NoBugs Corporation, the only producer of chips meeting Sterling's high specifications. Write a discussion of the ..
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