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What are the basic ways of dealing with externalities? Briefly describe the pros and cons of each.
There is no toll for using a freeway during rush hour. Explain why economists think this is unwise (i.e. use economics to explain why we should have a toll on the LIE during rush hour). Explain why (for a public road) Coase theorem is unlikely to apply (i.e. resolve the issue of the increase in crowding/congestion brought about by additional use of the freeway).
Discuss the current state of the Chilean economy by focusing on the recent past and macroeconomic characteristics
What factors led to the mortgage default crisis? How did mortgage defaults affect banks involved in mortgage lending and mortgage investing
If tax rates stay the same, what will happen to total tax revenue?
Jim sees commuting by bus and T as perfect substitutes (U = T + B), that is, he would exchange one commute by bus for one commute by T. The price of a bus ticket is $1.50 and the price of a T ticket is $2.00. Explain the relationship between the slo..
Suppose that there is an announcement that chocolate causes cancer what., would happen to equilibrium price band quantity in the market for her shey's chocolate be? be able to draw the graph that illustrates your answer
Why is the growth of consumer spending considered a positive factor for expansion of GDP even when personal saving is falling to a negative level? Are the long term and short term effects of a negative personal saving rate both favorable to economic ..
Suppose that the Bureau of Labor Statistics issued statistics about the population and labor as the following:
Emilie loves profiteroles. She makes a profiterole by combining one unit of chocolate sauce (say 8 fl oz) and two puffs (stuffed with paste). She receives one unit of utility per profiterole. Bertrand just likes to eat. He receives one unit of utilit..
In the text, we suggested that for well-off individuals with uniform taxation, preferences for education were not single-peaked. Why might preferences for local parks and urban public transportation systems (e.g., buses and subways) also not be singl..
Suppose you own a house in Mobile, AL. Your house is currently worth $200,000. Suppose there is a 5% chance that a good destroys your house, in which case it will be worth $0. You have $50,000 in your bank account. What is the expected value of your ..
a if you deposit 10000 in a bank account that pays 10 interest annually how much will be in your account after 5
Elucidate the process and causes by which each of the following economic events will move the economy from one long-run macroeconomic equilibrium to another. Use the diagrams below, resizing them as necessary.
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