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The Individuals with Disabilities Education Act mandates that states and localities provide appropriate education for all students identified as having special needs. States have responded by funding special education using several different mechanisms. Two of these mechanisms are “census” approaches (in which states estimate how many children should have special needs based on student characteristics and allocate money to localities based on these predictions) and “marginal subsidy” approaches (in which states pay localities a percentage of the amount of money that the localities say they spend on special education). It has been found that the marginal subsidy approach leads to more students being classified by their localities as needing special education than does the census approach. Why might this be the case?
If there is an inflationary gap in the economy, what fiscal policy decisions would you make to bring the economy back to the full employment point? Explain why in each policy that you make.
Suppose there are two goods being produced in the economy: robots and wheat. Robots are a capital intensive good and wheat is a labor intensive good. Suppose that there are two countries: France and Brazil. France is capital abundant and Brazil is la..
State the appropriate monetary policy which the Bank of Canada should be operating, given the above situation.
Below are four hypotheses to explain changes in wage inequality in the United States between 1970 and today. For each of the four hypotheses, indicate (1) whether it predicts an increase or decrease in wage inequality and (2) give one reason why it c..
What could the federal reserve system Fed do in 2000 in order to bring the economy back to full employment ? What did the Fed actually do? explain
A chemical factory is situated next to a farm. Airborne emissions from the chemical factory damaged the crops on the farm. Using the marginal benefits and costs schedule above, plot a graph that shows the interaction between benefits to the factory ..
A firm with Monopoly in two markets and the same costs of serving them should charge a higher price in that market with a higher demand.
The world becomes a single market, some new approach must be developed to control the reach of the corporate oligopolies.
Crowding out in the loanable fund: what does it mean? Please define: stock, bond, dividend, risk free investment. What are the functions of money? What is the difference between fiat money and commodity money?
"In a 2x2x2 Heckscher-Ohlin context, when a relatively labor-abundant country moves from autarky to trade, the real return to capital in the import-competing industry decreases and the real return to capital in the export industry also decreases."
If two countries have identical production possibility frontiers, then trade between them is likely to be beneficial if:
The slope of the total product (output) curve is the
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