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Provide two examples of a monetary incentive and two examples of non-monetary incentive, a carrot and a stick of each, that government policies use to influence behavior. [Hint: you are welcome to choose any examples you like. If you prefer to limit your attention to few, consider risky/socially undesirable behaviors: smoking, gambling, etc.]
When economists speak of "marginal," they mean. Managers undertake an investment only if. A manager of a clothing firm is deciding whether to add another factory in addition to one already in production. The manager would compare. If a firm's average..
A bank currently has $70,000 in deposits, $6,000 in cash in the vault, $12,000 on deposit with the Fed, and $7,000 in government securities. The required reserve ratio is 20 percent. What is the maximum amount the money supply can increase, assuming ..
You know that marginal cost of last unit is $30. Should industry continue to operate at a loss. Carefully elucidate your answer
An example of a cost externality occurs when a mining company
If unemployment is above the natural rate of unemployment, then potential GDP is:
Assuming that the information required making decisions are held by lower-level employees, it makes sense to delegate decision authority to these employees. But, there must be trade-offs (because there always are). Speculate on the “costs” of delegat..
Contrast the difference between temporary and permanent damages on the incentives of people to build new houses near the cement factory
Discussion question: Most airline economists believe that airline labor, especially pilots, have traditionally been overpaid relative to comparable positions in other industries. How and why have airlines reduced labor’s compensation and how have lab..
Output for a simple production process is given by Q = 2KL, where K denotes capital, and L denotes labor. The price of capital is $25 per unit and capital is fixed at 8 units in the short run. The price of labor is $5 per unit. What is the total cost..
What is the deadweight loss in both markets if the price of a crate of fresh oranges is raised.
What is the role of models in economic analysis? How can it be determined if the assumptions underlying the design of an economic model are overly simplified or overly limiting? At what point do the assumptions invalidate the model? Why?
An entrepreneur trying to find a location for a sporting goods store has decided to use the index of retail saturation as a guide. She knows that Site 1 has a trading area with 42,374 potential customers who spend an average of $87.50 on sporting goo..
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