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Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant, answer the following questions:
Will there be significant progress on the poverty front, because of an increase in GDP.
If the IS curve does not shift when autonomous consumption increases by $100 MM and autonomous taxes increase by $200 MM, what can we infer about the marginal propensity to consume?
Use examples both numerical and explanations to make your case. Give an example of a real world situation where two or more firms in a certain industry would be better off if they came together and behaved like a monopoly.
Explain how much does consumption change this year in absolute dollars as a result of a $5,000 annual tax cut to your income, if the tax cut.
When the price of pears fell to $3, what part of the change in Sarah's demand was due to the income effect and what part was due to the substitution effect?
Explain what the tax multiplier is and why it is less than the expenditure multiplier. Explain, in your own words, how an increase in investment spending generates a multiplied effect on GDP.
ohn also Jeremy are utilitarian's. John believes to labor supply is highly elastic while Jeremy believes to labor supply is quite inelastic.
Illustrate what is the maximum amount you will pay for the new process. Suppose that the new process must pay for itself by the end of the first year.
During the same time, total annual movie admissions have barely changed. What cost factors can explain this trend? In addition, what demand factors might be also be relevant?
Which of the following is a major difference between the AD-AS model and the dynamic AD-AS model? The dynamic .AD-AS model assumes the economy does not experience long-run growth, while the AD-AS model assumes there is constant inflation in the ec..
Consider a simultaneous-move auction in which 2 players simultaneously select bids, which must be in nonnegative integer multiples of one cent.
What is the dollar value of the deadweight loss when output level Q3 is produced? What is the total surplus when output level Q3 is produced?
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