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Suppose the marginal costs of pollution reduction are unknown and the government is choosing between regulating the quantity of pollution directly or taxing pollution. “If the marginal benefit from pollution reduction is elastic (flat), it is better to tax directly the pollution.” Show whether this is true, false, or uncertain.
Illustrate what price and quantity will prevail if the monopolist is not regulated. What price-output combination would exist with efficient pricing.
GDP is typically calculated by tallying all final expenditures in an economy, but it can also be calculated by adding income. Pick a product and give an example of how that product's contribution to GDP could be calculated using income.
The financial writer Andrew Tobias described an incident that occurred when he was a student at the Harvard Business School
which of the 3 determinants of macro performance (internal market forces, external shocks, and policy levers) would you consider the most important in terms of gauging the success/failure.
q.the north american free trade agreement nafta was created 20 years ago to expand trade among canada u.s. as well as
What is the EV(expected value) of option 2? If you are risk-averse, which option should you choose? Explain. Describe two factors discussed in class that lead to competitive imbalance within a sports league. Under what circumstances would an economis..
a. Assume that the interest rate is 5%. What is the price of the bond? (Please show me work) b. Now suppose that the interest rate falls to 2%. What is the price of the bond? (Please show me work)
What is the Law of Diminishing Returns. Discuss a company's two short run options: 1. stay open or 2. shut down.
Consider the simple model of goods/services market (with government and foreign trade AE=C+I+G+Xn) and the money market (Dm-Sm). Suppose the following policy mix is carried out: What would be the effect of lower required reserve ratio on the money ma..
what is the expected annual real depreciation consistent with interest rate parity?
Consider an airport that produces noise that decays as the distance d, in miles, from the airport increases: N(d) = 1/d2 . Fritz works at the airport. Fritz’s damage from noise is $1 per unit of noise and is associated with where Fritz lives. Suppos..
A perfectly competitive market is described by the demand Q = 70 - 2p and the supply curve Q =5p - 20. A firm in the market has a total cost equation of C = 16+ Q^2 + 2Q. Calculate the equilibrium price in the market.
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