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The Coase theorem suggests that efficient solutions to externalities can be determined through bargaining. Under what circumstances will private bargaining fail to produce a solution and how should the issue be resolved?
Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 4%, the growth rate of the velocity of money is 9% and that the real economic growth rate i..
a) Solve for the original market clearing price P* and quantity Q* b) Calculate price elasticity of demand at the initial price, P*
Economists have devoted a lot of effort to estimating the natural rate of unemployment in particular countries at particular times. Is this a useless academic exercise, or are there good reasons to want to know this number? Explain.
Indigenous Australians have the worst health of social groups in Australia. Describe two social determinants that contribute to a lower life expectancy for Indigenous Australians. Identify one condition that Indigenous Australians have a higher preva..
What is the marginal product of the fifth? worker?
First address what inflation is and how it is measured. Then, discuss the role it plays in our economy and list some specific strategies that can be used for controlling inflation. When commenting to your classmates’ posts, discuss whether or not you..
What are the key limitations of per capita national income as a concept of well-being? Explain the nature of limitation in each case. Which of these limitations can be adjusted for? Are they in fact adjusted? What is the basis of the concept of huma..
Suppose the total benefit a consumer enjoyed from consuming each of six cookies were $8+ $6 + $5 + $4 + $3 + $1. If the price of each cookie were $1, what would be the consumer surplus in this market?
Supposse the (external) damage done by pollution is known to be MD=300+5q, and the (private) cost and benefit are given by MC=100+2q and MB=D-2q, where D is not known. Suppose that, based on the result from part (a), a tax is imposed to allow the opt..
What does it mean when we say that a firm enjoys increasing returns to scale? What are some factors that contribute to a firm achieving increasing returns to scale (or economics of scale) in the long run?
Suppose the demand for eggs is: Q=9,000-3,000P and the supply of eggs is: Q=-500+2,000P, where quantity is measured in millions (of eggs). Find the market-clearing price and quantity for eggs. Now suppose the cost of producing eggs increases such tha..
Imagine that you are a manager running a unit in a rehabilitation center. Up to this point, your primary population of payers has been elderly patients who come into the center for physical therapy. What potential solutions would you suggest to your ..
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