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1. “If the legal standard of care in a negligence rule is necessarily vague, the court should set it below the level of efficient precaution.” Explain the economic argument in favor of this proposition.
2. Doctors are liable when their negligence injures patients. Suppose the rule was changed from negligence to strict liability. How would administrative costs change?
newspaper reports frequently suggest that the administration regardless of who is president wants the fed to lower
You are trying to decide between buying a Toyota Camry and Honda accord. The initial cost of Camry and accord are $23,000 and $25,000, respectively but the annual maintenance of Camry is estimated to be $200 more compared to accord. What is the incre..
q.exercise 1graphically represent on the islmfx diagram the effects of the following cases use a new diagram for each
One problem in using this function to study consumer surplus is that Q never reaches zero, no matter how high P is. Hence, suppose that the function holds only for P ? 10 and that Q = 0 for P > 10. How should you graph in part b be adjusted to fit th..
Canadian GDP whether measured by the value added approach, the expenditure approach, or the income approach.
Consider the following game. You roll a six – sided die and each time you roll a 6, you get $30. For all other outcomes you pay $6. What is the expected value of the game?
q1. americans already enjoy living standards that far exceed world averages. do we have enough? should we even try to
Illustrate what economic cost will an owner of a family-run business or farm likely overlook when computing their "profits".
Elucidate why there is a relationship between price elasticity of demand and the effects on total sales revenue.
If the bank compounds interest yearly, explain how much will you have in your account on January 1, 2015
List the economic benefits of, and problems with, subsidized college education. Examine subsidized college education by considering answers to the three basic economic questions: What to produce with limited resources? How to produce the goods and se..
If the economy was experiencing a severe recession, which of the following combinations of monetary and fiscal policy actions would be most appropriate?
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