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In the 1990 Clean Air Act Amendments, Congress and the EPA rely on the automobile industry to develop a cleaner automobile. At the same time, the government imposes a relatively minor federal tax on gasoline.
a. Do you see any problem with the implicit signals the federal government is sending to American auto manufacturers and to American car drivers through these policies? Briefly discuss.
b. Formulate a hypothetical economic policy to motivate automobile manufacturers to advance the technology of cleaner motor vehicles.
Apply the substitution and income effects to the purchase of meat given the lower price. How is this related to the law of demand? Hint: use chicken as a substitute good in your discussion.
what is the difference between contractionary and expansionary fiscal policies? which is more appropriate today?
For all market conditions that a business can operate in, the marginal cost curve for its costs will select one: Rise in the beginning to reflect the law of diminishing returns. Always go through the minimum point on the average fixed cost curve
U(X,Y) = X2Y. The consumer has $24 to spend and the prices of the goods are PX = $2 and PY = $4. Note that the MUX = 2XY and the MUY = X2.
What is the optimal level of pollution reduction
Some news reports have suggested that the proposed tax would increase cigarettes prices by $1.00 per pack and be paid by smokers (cigarette buyers). Using (separate) competitive supply and demand diagrams of the cigarettes market carefully show an..
Write the labor market equilibrium condition for the Specific Factors model. Use it to explain what happens to both real product wages when the price of the labor intensive good rises.
the elasticity of demand for home computers is -2.5 the elasticity of demand for business computers is -.90 and the
explain the following statement any deviation from planned output or planned expenditures consumption investment will
What do the fundamental consistencies underlying the behavior of all individuals enable researchers to do - which of the following is a generic term that covers a broad range of feelings that people experience?
Define any key terms that you feel are important in answering the following question as they are defined in the textbook and explain, in your own words what those definitions mean , and then thoroughly analyze each situation to answer the following q..
8. Julia's publisher sends her a $15,000 check every year that her book is in print. Suppose Julia's book is in print for five years and the inflation rate during that period is (-2) percent.
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