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Super freakonomic chapter 5 Explain the concept of an externality. Distinguish between a positive externality and a negative externality and give example of each. Finally, explain how the market equilibrium when the externality is not accounted for compares with the market equilibrium when the externality is explicitly accounted for.
Why does government mandate individuals to purchase their own insurance in some cases such as automobile liability insurance but directly provide insurance to people in or situations such as health insurance.
In an effort to reduce their total costs many companies are now replacing paychecks with payroll cards
Should the government increase the minimum wage? What should be the GUIDELINES for an increase? What are some of the disadvantages of an increase?
Policymakers sometimes propose laws requiring firms to give workers certain fringe benefits, such as health insurance or paid parental leave. Let's consider the effects of such a policy on the labor market. Why might the labor-supply surve shift in r..
Which policy do you believe would be more effective in the short term for accomplishing these goals.
what combination of monetary and fiscal policy should they choose? Use a graph, and be sure to identify the effects of each policy.
Suppose a person has $20 to spend on music and likes both rap music (R) and country music (C) with a set of preferences so that U=C^1/2R^1/2. Suppose that the iTunes price of a rap music song is PR=2 and the price of a country music song is PC=1. Wri..
An engineering firm can lease a measurement system for $1,000 per month or purchase one for $15,000. The leased system will have no monthly maintenance cost, but the purchased one will cost $80 per month. At an interest rate of 0.5% per month, how ma..
A major defence supplier expects to generate additional revenue from its recently won government contract. The company expects the revenue will be $110 million in the first year and the revenue increasing by $2.5 million each year for the next 4 year..
Assume that we care about the average welfare of individuals in Indian villages, i.e., we put equal weight on each individual's utility.
1. small mistakes are the stepping stones to large failures. how might this saying apply to this lesson as well as do
If a restaurant served free steaks, people would consume more and more steaks until their ________ fell to zero. If food were free in your school cafeteria, you would keep eating until. Suppose you buy eight pairs of shoes every spring. This year, yo..
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