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Using the optimization theory, analyze the following quotations :
a. The optimal number of traffic deaths in the United States is zero.
b. Any pollution is too much pollution.
c. We cannot pull US troops out of Afghanistan. We have committed so much already.
d. If Congress cuts out the International Space Station (ISS), we will have wasted all of the resources that we have already spent on it. Therefore, we must continue funding the ISS.
e. Since JetGreen Airways has experienced a 25% increase in its insurance premiums, the airline should increase the number of passengers it serves next quarter in order to spread the increase in premiums over a larger number of tickets.
What are the trial level courts, intermediate appeallate court, and high appellate court in New York State? What is the sliding scale standard with respect to jurisdiction? Can you give an example of it?
Suppose that legalizing the use of marjuana would decrease its price by 93%. If the price elasticity of demand for marjuana is -2.00, what would be the percentage increase in the quantity of marijuana demanded from legalizing marijuana? _______ perce..
q.a monopolist faces the inverse demand for its output p 30 - q the monopolist also has a constant marginal and
If a portion of the loans extended by commercial banks is taken as cash rather than as checkable deposits, the maximum money-creating potential of the commercial banking system will.
The economy is hit with a positive SRAS shock and you, in your role as a central banker, respond with an active policy response to stabilize inflation. (a) Draw an AS/AD diagram illustrating the changes in output and inflation. (b) Describe briefly h..
Suppose the firm A&B is a monopolist. What is the profit-maximizing price and quantity? How much profit does the firm collect? How much consumer surplus does the firm generate? What is the deadweight loss? Suppose consumers cannot see the differences..
A bank with a two-year horizon has issued a one-year certificate of deposit for $80 million at an interest rate of 4 percent. With the proceeds, the bank has purchased a two-year Treasury note that pays 6 percent interest. What risk does the bank fac..
Under what supply and demand conditions would an excise tax create a large incidence of the tax on suppliers and a small incidence of the tax on consumers? Explain how this works.
Abraham Maslow developed a hierarchy of human needs to describe the order of importance of various motivations. According to Maslow, physiological needs take priority over all other needs. Do you agree with Maslow? Why or why not?
By raising and lowering short-term interest rates to keep inflation moving at a steady pace, many central bankers and academics thought they had finally found a monetary policy solution to conquer booms and busts of the business cycle.
Suppose the marginal cost of production for a company is $6 at its current production levels. Suppose the price elasticity of demand is constant at -2 between prices of $10 to $15, if current prices are $10, is the company pricing at the correct opti..
Assume that you are 10 years into a 30 year home loan at 5%. You owe $200,000 left on your home at this time. You can refinance your loan at 4% for 20 years; however the TOTAL closing costs will be around $3,000. If you go for refinancing, how many m..
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