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Q1. Immediately following the attack on the United States on September 11, 2001, the stock plunged and many observers predicted a recession. Using the consumption and investment function, elucidate their prediction.
Q2. When we covered market failures, we never entertained the possibility that more than one market failure might exist simultaneously. Very weird things can happen when there are multiple market failures. For example, analyze the case of the "monopoly polluter." Explain how that the deadweight loss in this case might be less than if only one of the market failures (i.e., the monopoly or the polluter) existed alone. Describe the simple logic of why this is the case.
Why and under what situation should a company continue to operate when getting negative economic profits
you know that one senator on the Environmental Subcommittee will ask you to justify why the firm should not be charged a per-unit tax on the firm†TM s output to compensate for the pollution it discharges into a major river.
a. if gdp 500 consumption c 350 transfers minus taxes tr - ta 20 investment i 150 and the budget deficit bd 120
q1. a war breaks out which destroys industry facilities including factories machine etc. explain how explain how this
Both wealth and poor people consume some health care. For the sake of this question, assume that all people pay the same price for healthcare, and all other goods.
Draw the MC cure for Guns in terms of the production of butter. If the economy produces 3000 guns per day, how much butter can it produce per day.
Explain how do you run an oligopoly to make the largest possible profit. The oligopolistic producer of this vehicle failed to heed market signals. It failed. Can you name the company.
Is stability in the general level of prices through time important? Why or why not? Should price stability be the goal of monetary policy? Explain your responses.
q. the tax reform act of 1986 contains a clause appropriating tax dollars for any taxpayer incorporated on september 7
Provide examples of different tools businesses use to identify the elasticity of their different customers. Also elucidate how the financial aid department determines student elasticity.
Use EViews to get the correct critical t values for constructing the interval.
You find that your paycheck for the year is higher this year than last. What does that mean that your real income has increased. Explain carefully.
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