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Q1. The coase theorem: Suppose a firm pollutes a stream that has a recreational value only when pollution is below a certain level. If transaction costs are low, why does the assignment of property rights to the stream lead to the same (efficient) level of pollution whether the firm or recreational users own the stream?
Q2. Suppose MPC is0.8 initially. Households then change their behavior so that the MPC falls to 0.75. What happens to aggregate expenditures? Why?
Q3. You have been asked to estimate the cost of 1,000 pre fabricated structures to be sold to a local store school district. Each of these structures provides 1,000 ft2 of floorspace.
MMM expects to generate $60,000 in earnings that will be retained for reinvestment in the firm this year.
How many popsicles will be sold/supplied each day in the short run if the price rises to $4 each per day
Indicate if GDP is affected, under what category and what happens to GDP Oklahoma cleans up after a devastating tornado.
Use indifference curves to distinguish between income and substitution effects, using the above techniques explain why the demand curve slope downwards, What are the main criteria for designing a tax system, To what extent do you think the national..
Compare the rationale of the Reagan administration for the 1981 tax reductions with the rationale behind the Kennedy-Johnson tax cut of 1964
The government budget is balanced, with government purchases and taxes both fixed at $1,000. Net exports are $100.
Ordinary least- squares method or the two- satge least squares method for estimating industry demand for rutabagas.
Analyze a situation in which both parties entering into a contract could benefit, economically or otherwise, from slightly ambiguous language contained in the contract.
Excise tax is levied on the buyers of a good, then after the tax buyers will pay for each unit of the good.
Solve for steady-state level of captial and output. What savings rate would be necessary to achieve a steady-state output of 150.
Bud Owen operates Bud's Package Store in a small college town. Bud sells six packs for off-premises consumption.
What combination of T and M will you choose? Suppose that the price of day trip rises to $80. How will this change your decision making?
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