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There are two ways to protect your car from theft. The "club" makes it difficult for a car thief to take your car. Lojack makes it easier for the police to catch the car thief who has stolen it.
Which of these types of protection conveys a negative externality on other car owners ?
Which one conveys a positive externality?
Are there any policy implications in your analysis ?
Illustrate what is the price elasticity of supply for your chosen industry.
The annual demand for coffee by the U.S consumers is Q = 250 - 10P. Compute the lost consumer surplus?
Illustrate what happens to the money supply, interest rates, and the economy in general if the Federal Reserve is a NET BUYER of government bonds.
If the Rhine Corporation ignores the possibility that other firms may enter its market, it should set a price of $10,000 for its product, which is a power tool.
Calculate the mean income class for those individuals with private, employer sponsored insurance. Is this greater than or less than the mean income class for those with private, individually purchased insurance? Any thoughts regarding the compari..
An American Company that sells consumer electronics products has manufacturing facilities in Mexico, Taiwan, and Canada. The average hourly wage, output, and annual overhead cost for each site are as follows: Mexico Taiwan Canada Hourly wage rate ..
At present political campaigns, taxes and budget policy were key issues. White House budget packages are often created to stimulate economic growth.
In the late 1990s a growing number of economists argued that world policymakers were focusing too much on fighting inflation. The economists also argued that the technical level of potential output had risen. Show their argument using the AS/AD mo..
What is the implication for the expected value and standard deviation of the returns on your portfolio if you invest in N (instead of only 3) of these assets and N becomes very large?
A clinic finds that by eliminating appointments it can reduce costs. The clinic is able to eliminate some telephone staff, and physicians become more productive. Patients wait until the physician is available, so there is virtually no down time. D..
Three factors make analysts more optimistic: Companies are cutting production, weekly egg-set numbers are declining (egg sets are fertile eggs placed in incubators), and prices are responding positively to the decreasing supply. The ..
Assume that x1 and x2 can take any value (0,1,2,3,4,5). The payoff to student i is 10 - xi if she gets an A and 8 - xi if she gets a B, i = 1, 2. Derive the strategies that survive the iterative deletion of strictly dominated strategies.
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