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Demand: P = 7 – 2Q Supply: P = 4 + Q
Where P is output price in $/bushel and Q is billions (1,000,000,000s) of bushels. Recall that this farm produces a negative externality of $1.5 per bushel.
Let’s look at a using a regulation as compared to the tax.
a. Graph the quota that yields the same quantity produced as the tax would have yielded.
b. Now, show why the producer prefers the regulation (Quota) to a tax, considering that they will be forced one way or another to address the externality. Focus on their revenue with a tax, as opposed to with the quota.
c. Provide two more reasons that producers might prefer to have a regulation to address the negative externalities associated with producing wheat. Include an example to describe what you mean for each reason.
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Nozick criticizes Rawls by showing that Rawls’ account of rights is based on a ___________ that fails to fit the realities of life as we actually live it. (a) time-slice theory, (b) communitarian theory, (c) socialistic theory, (d) all of the precedi..
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The currency of Iceland is called the Krona. in July, 2007 the exchange rate was roughly 60 krona to a dollar. In July 2011, the exchange rate was roughly 120 krona to a dollar. a) Over this period, would you expect exports from the US to Iceland to ..
Cutting the corporate income tax can potentially increase the pace of technological change resulting in the aggregate supply curve shifting to the right.
An increase in the interest rate is expected to cause the optimal level of human capital investment for an individual to:
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