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Explain why each of the following statements is True, False, or Uncertain according to economic principles.
Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important.
1. The Ontario government now provides (pays for) influenza vaccinations free to all residents who want them.
This policy will result in less deadweight loss in the flu shot market than private purchases of “flu” shots.
[Hints: Assume that the flu is highly contagious and that the vaccination supply curve is perfectly elastic.]
2. Pollution emissions are a “bad”. Therefore the efficient level of emissions is zero.
Discuss two reasons that government should intervene in the operation of free markets and give two examples of real-world government policies or programs motivated by these reasons.
Who would pursue the first objective (maximizing revenues). Explain how could Ralph Lauren s managers provide an incentive for profit-maximizing behavior.
What is Anna’s optimal choice of comic books and AOG? Illustrate her optimal choice on a graph, using indifference curve-budget line analysis.
Should the United States pass a minimum wage that assures all workers earn a wage above the level of poverty.
Suppose that clean srings water c ompany has a monopoly on bottled water sales in california. suppose that the price of tap water increases. which is the change in the profit maximisation price and level of output for CSWC. explains in words and..
Compare also contrast McDonald's strategies in China with those of Wal-Mart in Mexico.
the top ten percentile cutoff was 95 points. a. What is the standard deviation for the class? b. What percentile did you score in?
Consider a hypothetical economy in which the marginal propensity to consume. Plot an economy consumption function.
q.an amusement park is considering changing its pricing scheme from a pay-per-ride system to a single opening fee
explain how changes in equilibrium occur as a result of changes in fiscal and monetary policy.
Illustrate what implicit assumptions is the publisher also the analyst making about price elasticity.
expected profit from machine decreases. Rental cost/user cost of capital will decrease when: real interest rate falls. This fully anticipated monetary expansion will cause which of following to occur.
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