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Describe an environment in which permit trading can contribute to economic efficiency. How do permits make such a contribution Why in a traditional model are permits and Pigouvian taxes considered equivalent in implementation? Give a reason that in practice they may not be.
tate in words and show with a graph the effect of the following events on equilibrium price and quantity of the market given. Assume you live in an economy that has a population of 2,000,000 people over the age of 16. The labor force in your economy ..
In December 1992, the government began requiring that food contain labels with nutritional information. The information had to be verified by independent laboratories. The price of verification was $20,000 per food item. What impact would this have o..
You borrowed $150,000 with a 30-years payback term and a variable APR that starts at 9% and can be changed every five years. What is the initial monthly payment? If, at the end of the five years, the lender’s interest rate changes to 9.75% APR, what ..
Evaluate the argument that monetary policy should be determined by a rule rather than discretion. How about fiscal policy?
If labor is paid $100 and your average tool price is $250 what is profixt maximizing level of output and labor? What is your maximum profit?
Elle's preferences over apples (A) and bananas (B) are represented by the Cobb-Douglas utility function; u(A; B) = AB. Write down the optimization problem. What is the objective function? What are the choice variables? What is the constraint? What a..
In which of the following situations would you prefer borrowing?
Looking at both the schedules of supply and demand, as well as the graph of the demand and supply curve for Maine Lobsters, what is the equilibrium price of lobsters and equilibrium quantity of lobsters demanded and supplied at that price?
Suppose that during the past year, the price of a laptop computer rose from $2,100 to $2,550. During the same time period, consumer sales decreased from 470,000 to 363,000 laptops.
A family that won a $100,000 prize on America’s Funniest Home Videos decided to put one-half of the money in a college fun for their child who was responsible for the prize. If the fund earned interest at 6% per year, how much was in the account 14 y..
q.government budget constrainta write the governments lsquolifetime budget constraint assuming its lifetime is just
Assuming no other changes, if balances in money market deposit accounts increase by $50 billion and small-denominated time deposits decrease by $50 billion.
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