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Privatization can be defined as "the process of returning to the private sector property or functions previously owned or performed by government". The basic idea is that there may be some services that the government is providing right now that the private sector might handle better. Sometimes the government no longer provides the service and allows private companies to run (and compete with each other) to provide the service (like sometimes happens with garbage pickup). Other times the government contracts with a company that can provide the service cheaper than the government agency could (like when a city contracts with a private landscaping company to trim the trees on public sidewalks). The idea is to have a more efficient, more effective service. Recently there have been some arguments that the United States Postal Service (USPS) should be privatized.
The discussion question(s) is:
Name one pro and one con of privatizing the USPS.
If you had the power to privatize the USPS, would you? Explain your response.
Mr. Allen views nutella and soda as perfect complements. She always needs two tablespoons of nutella with one tablespoon of soda, U=min{J, 1/2N}. What will her optimal consumption bundle be if the price of soda is $0.25 and the price of nutella is $0..
Suppose you are a thirty-year-old worker choosing between an IRA, a ROTH IRA and aregular brokerage account. Your marginal federal tax rate is 15% now and 15% in retirement. Compare after-tax returns on all three forms of investment. Rank the investm..
Consider an economy in which people wish to hold money balances worth a total of 5 million goods. They are indifferent between money issued by the central bank and money issued by private banks. Does this satisfy the central bank’s budget constraint?..
Why is the continuing income inequality in the US a problem for the economy? Does it matter that so many people own such a low percentage of total wealth in this country?
How is the effectiveness of team selling demonstrated by the Reynolds team, and what are some of the vantages to this method in this particular case?
A forest stand yields a recurring timber harvest income of $50,000 that occurs every 45 years. Using a 7% interest rate, find the present value of the perpetual harvest income stream assuming that the first income occurs 45 years from now.
q. suppose a government has no debt and a balanced budget. suddenly it decides to spend 1 trillion while raising only
You are a manager in charge of monitoring cash flow at a company that makes photography equipment. Traditional photography equipment comprises 40 percent of your revenues, which grow about 2 percent annually. If the own price elasticity of demand for..
here are many liquid cold medicines, all of which have almost exactly the same ingredients. Yet medicines with brand names that the man recognizes from television commercials are for more than the unadvertised versions. Elucidate in economic terms..
Develop a paper detailing an analysis of market structures and relating pricing strategies that are suitable for each of these structures. Furthermore, include a real world example of pricing strategy for a specific company by identifying its market..
How companies and countries are becoming specialised in certain industries to compete and expand their businesses. Compare Australia with any other country.
Suppose a firm’s production function is given by the following equation: Q = min(5K, 10L). If the firm is using 4 units of capital and 3 units of labor, how much output are they producing? Is this firm operating efficiently?
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