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Proper hygiene such as regular hand washing can greatly limit the spread of many diseases. How may this suggest a role for public interventions? What kinds of interventions may be possible? Suggest three distinct types of possible Intervention.
Explain why is the law of supply and demand in applicable without a ceteris paribus assumptions.
Suppose that the government of Tonga decided to impose or place a price floor on all imported chicken products. Elucidate what is the advantage and disadvantage of this policy.
Suppose the Nation of Arcadia produces only two goods, teapots and surfboards. If Arcadia produces only teapots it can make 80 per day. If Arcadia produces only surfboards, it can make 30 per day. What is the opportunity cost of 1 teapot in Arcadi..
A medical device company has a monopoly on a certain class of cardiac implants. Demand for the implants is given by P=28000-5Q and marginal revenue is given by MR=28000-10Q. The total fixed costs for the implants division is 50000 and the marginal co..
Economists have argued that rent control is "the best way to destroy a city, other than bombing." Why would economists say this. Illustrate what problems might it face in the future.
Explain how total output of the goods can increase when the countries switch to specializing in production of one good rather than dividing their workers evenly between the goods.
When a perfectly competitive firm (that sells its good for $18 per unit) hires 1 unit of factor X it produces 35 units of output and when it hires 2 units of factor X it produces 55 units of output. Marginal revenue product of the second unit of fact..
The terms of trade are the
Suppose that the United States and the United Kingdom both use the gold standard. Their prices of gold are $35 = 1 ounce and £7 = 1 ounce, which yields an implied exchange rate of $5 = £1. Now suppose that the exchange rate temporarily rises to $5.50..
Other channels of monetary policy. Consider this quote:” Monetary policy does not work simply through lowering interest rates. Sometimes it can directly affect particular credit markets in the economy.” Can you give an example of actions that the Fed..
To make a proper stop and frisk, a police officer may obtain the necessary information from:
Suppose a town is interested in providing a public good, crime prevention, to a community. There are two people who live in this community Sam and Sara. Sam's demand curve for crime prevention is given by q(Sam)= 100-2p and Sara's demand for crime pr..
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