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1. Explain the economic effects of spillover benefits?
2. Thoroughly and completely explain how spillover benefits are corrected and the economic implications of the corrections?
Should there be an increase in regulation enacted to cause companies to better market their products and services? Why or why not? Provide an example to support your response.
Define absolute and comparative advantage in your own words. Elucidate how absolute and comparative advantage were used in your simulation.
The purchase of the car that Joe dreams about can be accomplished by making payments of $300 a month for six years, if the first payment is made on February 1,1995, and the last payment is made on January 1,2001. Will Joe have saved up enough money t..
A gardener can use one of the three brands of fertilizers during the next growing season. The following decision table shows the expected gross income per acre for each fertilizer brand and weather condition for the growing season.
Suppose a public referendum is being held on whether or not to levy a tax on cigarettes. Currently, the supply of cigarettes is given by Qs = -120 + 28P. You estimate the demand for cigarettes to be Qd = 200 - 4P. What is the price elasticity of dema..
Which of the following is an example of moral hazard?
Suppose that your employer offered you $4,000 in cash instead of health insurance coverage. Health insurance is excluded from state income taxes and federal income taxes. (To keep the problem simple, we will ignore Social Security and Medicare taxes...
When the government imposes a binding price ceiling on a competitive market, a shortage of the good arises, and sellers must ration the scarce goods among the large number of potential buyers.
Assume that the U.S. dollar depreciates against the Japanese yen. What is the impact on aggregate expenditures and income?
Suppose that you are in the short-run and the production function for your firm is given as: F(L,K)=K1/2L1/2 Also, in the short-run capital is fixed at K=16. You also know that the wage rate for workers is w=10, the price of capital r=20 and that the..
The town finds an investor who purchases the warehouse and promises to renovate the old building and build condominiums. Is this economic growth?
A project that provides annual cash flows of $11,600 for 9 years costs $64,230 today. If the required return is 5 percent, the NPV for the project is $ and you would (Click to select) accept reject the project. At a discount rate of percent, you woul..
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