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Consider the following scenario: A toxic waste dump in Alabama has seepage that leaks into the groundwater. Groundwater is used by local residents for drinking and cleaning, in addition to supplying water for irrigation of local agriculture.
Please answer the following questions in a short essay format.
What does the Coase Theorem say? What assumptions are required for it to hold? Discuss how it may or may not apply in the scenario described above.
Suppose you purchased a 25-year, $2.5 million deep discount bond when it was intially offered. Four years later you sell the bond and market interest rates have risen from 6.25% to 8.54%. Calculate the initial price of the bond. Calculate the current..
Explain the 4 ways the Federal Reserve would increase the money Supply and explain and graph how this would impact interest rates, consumption, and investment, AD, GDP, Prices and Unemployment.
To help you reach a $5,000 goal five years from now, your father offers to give you $500 now. You plan to get a part-time job and make five additional deposits, one at the end of each year. (The first deposit is made at the end of the first year). If..
Syncretism is defined in the textbook as a combination of normally differing beliefs. This can mean the combination of religious beliefs or the combination of religious and cultural beliefs. Give two examples of religions, denominations, or sects tha..
Suppose instead that use of the Sonoma county buy local currency is completely voluntary. Who is the most likely to use this currency.
Zamen is a small country located in the midst of the Atlantic Ocean. It is completely isolated: no one goes there, no one leaves. One half of Zamen’s working age population is unemployed. What are the short run effects of Zamen’s sweater export on th..
Copiers cost about twice as much as workers. Would you recommend they buy another copier or hire another worker?
If the price per visit is given to be $25, at what level of visits will the maximum profit position be? What are the profits at this level? What is the quantity supplied?
Jim’s diner is just about to open in Memphis, Tennessee. However, Jim is trying to decide whether he wants to offer Coke or Pepsi soda products. Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. La..
In the market of identical firms, the market demand function is Q=1000-1000P. The marginal cost is the same for all firms, mc=0.28. Characterize what is the firm’s optimal output and price when there is a single firm in the market. Characterize what ..
Both inflation rate and unemployment rate are closely watched aspects of macroeconomic performances of the economy, and they are also among the key variables guiding macroeconomic policy targets. If you were macroeconomic policymaker, how do you bala..
Suppose the current price of gasoline at the pump is $4 per gallon and that one million gallons are sold per month in Texas. A local politician proposes to add a 10-cent tax to the price of a gallon of gasoline, and she claims that the tax will gener..
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