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Suppose a group is trying to decide between 3 alternatives: A, B, and C. Using some voting rule the group ranks the three alternatives and we can see that they prefer alternative A over alternative B. Then, the group is presented the same three alternatives (A, B and C) as well as a 4th alternative D. The voters’ individual preferences have not changed. However when the voting rule is used to rank the four alternatives we find that the group prefers B over A. Tell me which of Arrow’s assumptions was violated and carefully explain why.
A popular restaurant charges lower prices for alcoholic drinks in the late afternoon (4-6pm), but offers no such discounts at lunchtime or on weekends. What is different about demand characteristics for the same product at the same location but at di..
If he needs 80 percent of his income to maintain his standard of living upon retirement, how much annual income will he need from his employer's plan and from his own planning when he retires?
Before the war, Iraq had the capacity to produce a certain amount of oil from its oil wells. After the war, it found that capacity greatly diminished because the oil wells were on fire. Draw Iraq’s PPF before and after the war, assuming that the only..
Sunflower Inc. is a major supplier of reverse osmosis and ultra filtration equipment, which helps industrial and commercial customers achieve improved production processes and a cleaner work environment. Compute Sunflower's optimal price/ output com..
Discuss an event in your home city or state that brings new economic activity. It might be a major construction project, or major sporting event that occurs infrequently and brings a large number of people to your local area. Describe who benefits fr..
Crepe Creations is considering franchising its unique brand of crepes to stall-holders on Hermoza Beach, which is five miles long. CC estimates that on an average day there are 1,000 sunbathers evenly spread along the beach and that each sunbather wi..
Proponents of a balanced budget argue that the government's budget deficit cannot grow forever, but critics believe that this is not necessarily the case. They argue that what matters is the size of the debt relative to the nation's income.
(a) What is market concentration and how can you know whether a market is concentrated or not (b) What are the causes of market concentration (c) Are business mergers good or bad for the economy Explain why
What is consumer surplus?
The federal government can seek both criminal and civil convictions of polluters from:
With the aid of diagrams explain how externalities (both external costs and external benefits) can generate market failure.
Miguel is a 20 year old college student who works part-time and earns an annual income of $12,000. To smooth out his life cycle changes in income, Miguel can
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