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What are the roles of government in the market economy? Based the current economic conditions, to what extent should the government intervene in the market economy?
What are the justifications given in favor of more government involvement in the market economy? What are the reasons given in favor of less government involvement in the market economy?
Provide an example to discuss how special interests can succeed in perpetuating policies that are opposed by the majority of voters because the costs of organizing and motivating groups to take political action increase with group’s size.
Elucidate how might this allocation under allocation get resolved via the means suggested by the coase theorem.
Which of the following is an assumption of neoclassical economics?
This section examines correlation, estimating confidence, and margin of errors. Correlation is an important concept to understand, since often what is found in many areas of research is not cause, but a relationship that exists among variables.
Show that each of these has a diminishing MRS but that they exhibit constant, increasing, and decreasing marginal utility, respectively. What do you conclude?
Suppose a unit of quota rights allows the producer to sell a unit of output each year indefinitely into the future. Illustrate what increase in consumer prices will occur.
An aggregate supply curve represents the relationship between the:
Suppose that a risk-neutral investor has a choice between buying a one-year bond paying 4 percent today, a two-year bond paying 5 percent today, a three-year bond paying 5.3 percent today, or a four-year bond paying 5.5 percent today, if a one-year b..
The economic principle that consumers are willing to consume more of a good when price is low is depicted by the:
If firms to act socially responsibly and consider the social marginal cost, what is the equilibrium price and quantity. How do the equilibrium prices and quantities in the two scenarios compare with each other? What is the economic intuition behind s..
Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one more worker, the firm’s total monthly revenue will increase from $54,000 to $66,000. What is the marginal revenue product of ..
The bank and pays interest at the market interest rate of 4 percent. Is it correct to say that the cost to Mary of living in her house is less than the cost to John.
Consider a country that produces shirts and autos. Shirts are produced with sewing machines (specific factor) and labor while autos are produced using robots (specific factor) and labor. Labor is mobile between industries. Show how going to internati..
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