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The government often intervenes when private markets fail to provide an optimal level of certain goods and services. For example, the government imposes an excise tax on gasoline to account for the negative externality that drivers impose on one another. Why might the private market not reach the socially optimal level of traffic on the road without the help of government?
q1. assuming the abc bank has excess reserves of 5000 it could prudently expand its loans by a maximum of?q2. the
Illustrate what fraction of the total variation in trades of Bright Side remains unexplained.
A mutual stock fund has grown at a rate of 16% compounded annually since its beginning. if it is anticipated that it will continue to grow at this rate, how much must be invested every year so that $60,000 will be accumulated at the end of 12 years?
The Law of Demand states that the demand for a product is inversely related to the cost of such product.
Who is the current Chairman of the Federal Reserve? What is he doing to boost the financial market and the economy? Can he help revive the housing market? Did the REFI (Mortgage Refinancing) Boom help the economic recovery? Let's find out what the Fe..
A petroleum engineer estimates that the present production of 400,000 barrels of oil during this year from a group of 10 wells will decrease at the rate of 15% per year for years 2 through 10. Oil is estimated to be worth $25 per barrel. If the inter..
A car manufacturing company adopts a new technology that, ceteris paribus, increases the productivity of capital. At the same time, workers unionize and demand higher wages. Assume that for this firm capital and labor are substitutable. Which of the ..
q1. suppose that any punitive damages awarded to the plaintiff were to be paid not to the plaintiff but rather to say a
Compared to Netflix, Blockbuster had very little data on their customers, or understanding of their preferences or behaviors. Which Netflix advantage had the most impact on Blockbuster’s business model becoming disrupted?
Other things held constant, would the calculated capital intensity ratio change over time if the company were growing and were also subject to economies of scale and/or lumpy assets?
Explain how low must a quota be in effect to have an impact. Using a demand-and-supply diagram, illustrate and explain the net welfare loss from imposing such a quota.
how fiscal policy can ‘stabilize' economy. What about government borrowing and public debt.
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