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Suppose that the governmental authorities wished to decrease use of a pesticide that is leaching into groundwater supplies in a watershed by 60% from current use levels. Discuss the advantages and/or disadvantages of distributing marketable pesticide permits to each farm operating in the watershed equal to 40% of its current level of use of that pesticide, versus simply ordering each farm to reduce pesticide use to 40% of current levels under threat of heavy fines for non-compliance.
If the quantity of output demanded at every price level increases by $1 trillion, Illustrate what happens to equilibrium output also prices.
The graph below shows the demand and supply curves of the market for gasoline as well as the wedge that the tax creates. Explain how much is the total tax revenue.
Explain how does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil.
What is the effective rate of protection for the automobile industry in country A, if there is a tariff of 25 percent on imported automobiles and a tariff of 50 percent on imported inputs used in this industry.
Compute the t-statistics for each variable and explain what is inferences can be drawn from them.
Illustrate what two policies could you use to reduce the total amount of emissions.
argue the relationship among the marginal cost also the average variable cost also among marginal cost also average cost.
Elucidate how does the Demand curve faced by a monopolist differ from the Demand curve faced by a perfectly competitive firm.
Explain how does one construct a linear (or other mathematical program) to solve a competitive or walrasian equilibrium problem.
Take a position on whether or not companies benefit from using a structured profit approach to calculate their profits. Provide an explanation of your position with at least two examples or scenarios of the use of such an approach.
What could be the full increase in real GDP from the change in government spending assuming that the aggregate supply curve is horizontal across the range of GDP being considered.
Illustrate what is the new level of gross national debti. If 100 percent of the deficit is financed by the sale of securities to federal agencies.
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