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a) Using an example explain why negative externalities lead to inefficient overproduction and discuss one way government can ensure a more efficient outcome.
b) Discuss using an example what are public goods and why does it lead to a free rider problem.
c) Why is fishing in the ocean, where there are no well-defined property rights, a concern regarding our ability to ensure sustainable use of our fishing stock? Research what is being done in New England coastal fisheries to ensure sustainable cod fishing.
The following question provides some practice calculating the AFPs for different insurance policies. If the individual remains healthy (80% probability), she will consume $500 in medical care in the upcoming year.
Suppose that the government is deciding how wide to make a public road that services one resident named Bob. Bob’s willingness to pay for each metre of road is described by 20 – 2Q. Graph Bob’s willingness to pay (demand) curve. Suppose that the marg..
Can you give examples of the companies that have high pension costs. Why are companies using more technology input while reducing labor input. Explain why are the Average Cost Curves U-shaped.
In the fall of 2002 the Fed voted to decrease the federal funds rate target on several different occasions, reducing it from 3% to 1.75%. What action in the "open market" would the Fed's trader have had to take, other things equal, in order to induce..
Assume an open, mixed economy. Assume the MPC is .7. Assume a stimulus package of $100 billion has been approved by Congress and the money has been spent. In order to pay for those expenditures, Congress also approved a $100 billion increase in indiv..
A material handling system was purchased 3 years ago for $120,537. Two years ago it required substantial upgrading at a cost of $14,340. It once again is requiring an upgrading cost of $24,925. Alternately, a new system can be purchased today at a co..
In the cas Palmer v. Champion Mortgage Palmer received a debt-consolidation loan from Champion. When she signed the loan agreement, she also received the required TILA disclosures.
Which of the following is often not a disadvantage of decentralization?
Some politicians and financial/economists argue that the U.S. must embark upon an era of “financial repression” in which wealth must be kept from fleeing the country and must be taxed heavily within the country. What would be the rationale for financ..
What are some contemporary technology issues? How do we learn to accept the social responsibilities of educated citizens in a global technological society?
Express the retailer's monthly profit from the sale of the cameras as a function of the selling cost. Estimate the optimal selling cost.
Each of the players chooses an (integer) amount between $180 and $300. Both players receive the lower amount. Five dollars are transferred from the player who chose the larger amount to the player who chose the smaller one. Which strategies survive r..
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