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1. There is currently a surplus of allowances at the price of zero. What must be true of the relative positions of the market demand and supply curves? Explain.
2. If the EPA were to allow firms to use allowances to emit sulphur dioxide as they did in the past, what would happen to the equilibrium allowance price? Why?
consider an agent who lives two periods. he is unemployed at the beginning of the first period and has a wage offer of
If interest rates or opportunity costs investment, happened to be the same in both developed countries and emerging economy nations, what could account for faster upward shifts in the latter group’s planned investment functions?
Explain why the productivity standard for the distribution of income entails rewarding people based on their contribution to societys total output. Why does the productivity standard typically fail to yield an equal distribution of income
"You have no right to shut my line down," snapped Connie. "I'm in charge of this line and I am the one to shut it down when there are problems. I suppose you've screwed around with the robot too. The minute I turn my back, you people sneak in here..
For each of the following scenarios, use a well-labelled diagram of the supply and demand for saving and investment to analyze the effects on the real interest rate, equilibrium investment, and equilibrium national savings. U.S. military involvement ..
Although there is relatively little dissimilarity in the cost of producing hardcover and paperback books, these books sell for very different prices. Describe this pricing behaviour.
Using the mortgage calculator spreadsheet available on VISTA, produce a graph which displays, for each month, the amount of repaid principal (also called normal paydown) and the interest paid when the nominal mortgage rate is r = 5.33% compounded ..
The federal government cuts spending on the purchase of new goods and services by $35 billion at a time when households are not spending 40% of additional income they receive.
archer daniels midland company is considering buying a new farm that it plans to operate for 10 years. the farm will
bull what is the regulation or statute for?bull who does the act protect?bull what are the consequences for
Suppose that she invests in a college education, expecting to get a better and higher wage job. Show how her optimal stock of health capital changes by the age of 30 due to the increased wage.
Assume that, as the chair of the Fed, you make a decision to "put policy on automatic pilot" and require that monetary policy follow an established rule.
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