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There is a debate about whether sterile hypodermic needles should be passed out free of charge in cities with high drug use. Proponents argue that doing so will reduce the incidence of diseases, such as HIV/AIDS, that are often spread by needle sharing among drug users. Opponents believe that doing so will encourage more drug use by reducing the risks of this behavior. As an economist asked to assess the policy, you must know the following: (i) how responsive the spread of diseases like HIV/AIDS is to the price of sterile needles and (ii) how responsive drug use is to the price of sterile needles. Assuming that you know these two things, use the concepts of price elasticity of demand for sterile needles and the cross-price elasticity between drugs and sterile needles to answer the following questions.
a. In what circumstances do you believe this is a beneficial policy?
b. In what circumstances do you believe this is a bad policy?
Glen spends at least 40 hours a week at his place of business. If he closed the company, he could work for his competitor earning $50,000 a year. He also owns the building the company operates in and could rent it out for $12,000 a year if he closed ..
Analyze the process of forecasting foreign-exchange rates and create a short list of best practices. Explain your rationale for selecting the practices you did.
What impact does the privatization of prisons have on providing rehabilitative services that would help prisoners rejoin society productively and curb recidivism? Explain.
Suppose that the goverment of the city of Udellum, wich has a Baa credit ratng issues a bond with the same time to maturity in a market that is just as liquid as the market for corporate bonds. Suppose that investors have a federal tax rate of 30 ..
Someone claims that under efficiency wage models "if the wage rate increases in a market with heterogeneous workers then we will have a shift in the labor demand curve, and not a movement along the c..
Reflect upon the ethical requirements imposed on businesses by the law and society. Sarbanes Oxley was enacted in response to widespread ethics violations. Do publicly traded companies owe ethical duties to their investors beyond making a profit
Using the same product example above, analyzing how the risk tolerance factors play in supplying the good or service and how this should influence management's decisions.
Starting in late 1970s and continuing through the 2000s, business environment moved toward relying less on government regulation and more on marketplace to get desired economic targets.
Compute the expected market price. Show calculations please. How many units should you produce to maximize expected profits? What is your expected profit or loss? Again, show work.
What is a discouraged worker? Are they included in the basic unemployment rate? Are they included in any measure of unemployment? How has the number of discouraged workers changed since 2008? How does the exclusion of the discouraged worker affect..
If a worker can produce 20 units of output which can be sold $4 per unit, what is the maximum wage that firm should pay to hire this worker?
a. Profits earned by Ford Motor Company in 2012 on automobile production in Ireland
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