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Suppose a local coffee shop in the downtown area decides to purchase a neighboring abandoned lot and convert it into a garden area with outdoor seating.
(a) Does this decision create an externality? If so, what kind?
(b) Despite the city's positive response to the coffee shop's renovation, other businesses in the area have not followed suit in renovating the many decrepit buildings and abandoned lots. How might the presence of an externality be in part the cause of this?
(c) In response to the lack of effort on the part of businesses to renovate the downtown area, city council members to take action. What are some ways that the city government could promote this kind of revival?
If the Federal Reserve changes the reserve ratio in the economy from 10% to 5%, explain the effect this will have on the broader economy in the short run and the mechanism for it happening. Use both the quantity theory of money and the money multipli..
How has the demand of luxury and necessary goods changed over the past 5 years? In your opinion, why has the supply of fuel efficient vehicles increased over the past 5 years?
In multiple regression analysis, explain why the typical hypothesis that analysts want to test is whether a particular regression coefficient (B) is equal to zero (H0: B 0) versus whether that coefficient is not equal to zero ( H1: B 0).
you consume only soda and pizza. one day the price of soda goes up the price of pizza goes down and you are just as
Course outcome(s) practiced and assessed in this Assignment: GB540-5: Assess how economic theory and concepts are utilized to maximize the quality of economic decision-making.
a struggling company currently has a net worth of 700000. it owes 500000 from debt financing assume these are loans
A local newspaper headline blared, “Bo Smith Signs for $30 Million.” The article revealed that Bo Smith, the former record-breaking running back from Football University, signed a $30 million package with the Nebraska Lions.
Assuming that poor and rich countries have the same production function, illustrate how the poor country will converge with the rich country. Describe how this mechanism works. 2. In the data, countries with low living standards have capital-to-wo..
How does the concept of "tradeoff" relate to "opportunity costs" and what is the difference between monetary and non-monetary opportunity costs?
part of a business strategy you are considering involves the reduction of labor and material costs. your cfo suggested
1) If it costs more energy to recycle than to dispose, shouldpeople be incourage to recycle 2) Oregon Forrest Restoration Act requires a logging companythat cuts a tree, must plant 3 to replace it. Why do you think mosteconomist saythis law is not..
Many countries in the European Union use the same currency: Euro. Should the US, Canada and Mexico similarly use the same currency? What are the pros and cons of using the same currency if all three countries use it? Will the US benefit from such as ..
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