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Suppose a political candidate criticizes a government pollution permit policy that she says lets corporations buy and sell the right to pollute. She argues that our right to breathe and the future of our planet require real regulation instead of this type of government policy.
Which of the following describes why most economists would disagree with her statement?
a) A corrective tax would result in a more efficient outcome than either tradable permits or government regulation would.
b) Clean air is a fundamental right, and government regulation will allow too much pollution.
c) A free market in tradable pollution permits is typically more efficient than government regulation.
d) The environment is so important that it should be protected as much as possible, regardless of the cost.
Should innovation activities be linked to our efforts to develop a strategic advantage or should innovation efforts be experimental with an objective of finding products or services that may be profitable at some indefinite point?
Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a penetration price, with supportive reasoning for and against each pricing alternative.
Movies are distributed in a variety of forms, not just first run theatrical presentations. What other ways are movies distributed? What are the different price points? Using this information, draw a fully labeled graph of the market for movies in whi..
Illustrate what is the value of goods and services purchased by the government of Numidia.
The less responsive consumers are to a change in the price of a product, _____
Consider an economy in which people wish to hold bank checking deposits worth a total of 5 million goods and currency worth 2 million goods in every period. In addition there is a stock of un intermediated capital worth 10 million goods. Find the tot..
Suppose the economy is in an inflationary gap. Which of the following public policies would not help the economy get back to potential real GDP?
When a war breaks out in the Middle East, the price of gasoline rises, and the price of used Cadillac falls.
The private and social marginal cost (MC) of producing squibs is MC = 2.5 + 0.0375Q, where Q is quantity of squibs in thousands of cases per month, and MC is measured in dollars per case. The market is competitive and firms would supply at marginal c..
Easterly (2012) presents the tale of Thomas Cresap in “Intermezzo: In Search of a River” (pages 16-19) and concludes that Cresap was pulled out of poverty. Please discuss the economic growth detailed in the story and how poverty was reduced.
The economic model of a perfectly competitive market is very unrealistic because it predicts that firms in a perfectly competitive market earn zero profits in the long run. However, in reality, no firm would stay in business if it earned no profits. ..
For each group identified in bold type below, use the labor-leisure choice model to illustrate graphically and then explain the change in the quantity of leisure desired. Be sure to explain how the group’s labor force participation rate is affected.
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