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If all firms have the same marginal external costs and marginal abatement costs, which form of environmental regulation can result in the optimal level of pollution?
(a) Cap-and-trade(b) Emissions limits(c) Emissions taxes(d) (A) and (C)(e) Any of the above
The government uses policies like student loans and free trade to influence the economy's growth rate. In 600-1200 words, identify at least four policies from the textbook that the government has created to impact economic growth and productivity.
Policy makers are considering adoption of a deficiency payment program. Find the optimal size of government subsidy G (where G = Ps - Pd), when the government objective, or policy objective, is to maximize:
Compare the conditions necessary for efficiency for a pure public good with a private good.
Let MUa=z=10-x and MUb=z=21-2y, where z is marginal utility per dollar measured in units. x is the amount spent in product A. y is the amount spent on product B. Assume that the consumer that the consumer has $10 to spend on A and B, that is x+y=10. ..
If an agent is liquidity constrained, then an unexpected increase in transitory income of $100 can result in the agentís current consumption increasing by $100"
Draw a graph that shows the usual relationship between the marginal product of labor and the average product of labor. Why do the marginal product of labor and the average product of labor curves have the shapes you drew?
Macropoland has a natural rate of unemployment at about 4.5% and its long run average of inflation over time has been about 2%. This means that no matter what happens in the short-run, the long-run averages of unemployment and inflation will always b..
Suppose that government spending is raised at the same time that the money supply is lowered. What will happen to the position of the aggregate demand curve?
Where the independent variables are respectively: P, price of McBurger’s burgers, PC, price of competitors' burgers, Y, per capita income, and A, McBurger’s advertising budget.You observe that competitors have, on average, priced their burgers at $3...
Suppose supply of a good is perfectly elastic at a price of $5. The market demand curve for this good is linear, with zero quantity demanded at a price of $25. Given that the slope of this linear demand curve is -0.25, draw a supply and demand.
Explain how the invisible hand fights back when government try to overrule market forces with price controls.
Research unemployment and inflation. Use your course materials and the Internet for your research. Use the following to guide your research: Examine articles discussing unemployment and inflation rates within the last 12 months.
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