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Problem 1: Using either a graph or table use two goods to construct a production possibilities curve. Clearly explain what a variety of different points on the curve mean. What would make the curve expand or contract? Why is efficiency lost at the extremes, as when substantially more of one good and very little of another is produced?
Problem 2: Part A: Go to the internet auction site eBay and select the category Jewelry and Watches, followed by Loose Diamonds and Gemstones, and then Diamonds, Natural. How many natural diamonds are for sale at the moment? Note the wide array of sizes and prices of the diamonds. In what sense is there competition among the sellers in this market? How does that competition influence prices? In what sense is there competition among buyers? How does that competition influence prices?
Problem 3: Select a social problem where free markets are not allowed to function and describe how free market features could be introduced to help alleviate the problem. As part of your answer also include a discussion of the risks of introducing market mechanisms in situations where ethical issues are present. Your answer should be approximately two pages long and in APA format.
Estimating the Marginal Return to Schooling Suppose Carl's wage-schooling locus is given by the following schedule and Human Capital Investment
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How could the Klamath Basin water shortage have been avoided? And how can we avoid this situation in the future and how do we decide between "fish vs farmers" in general?
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