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Under a cap-and-trade program designed to control greenhouse gas, suppose the demand for pollution rights increases as the economy improves. What happens to the equilibrium price for the pollution rights?
A. Increases
B. Does not change
C. We do not have enough information to answer this question
D. Decreases
Which of the following situations is likely to involve moral hazard?
Comparing the situation of a nominal rate of 10 percent and an inflation rate of 9 percent with a nominal interest rate of 6 percent and inflation rate of 2 percent, consumers would borrow more in which situation?
If you were the angel investor, what is your certainty equivalent for these two projects? Are you risk-averse, risk-neutral, or risk-lover?
For an industry with MAC = 500-2E and MDC = 3E: Calculate the socially efficient tax rate. What is the total compliance cost to the industry if the socially efficient tax is charged? What are the net social benefits of the socially efficient tax?
Why are some producers forced to sell their products at the prevailing market price?
Illustrate what is the product maximizing level of output for this producer. Will the producer make a positive profit at this level of output.
Maintenance of forklift is $400 prr year during Years 1 and 2 while the warranty is in place. In Year 3 it jumps to $750 and increases $200 per year thereafter. What is the optimal life of the forklift?
Which of the following determinants of marginal productivity cannot be acquired by someone who wants to increase future productivity? The effects of the national health care program on labor markets will. One reason some economists are critical of th..
The manufacturer's managers are convinced that they could make more sales if they could convince the retailers to carry a full line of products. How could the manufacturer induce its retailer to carry a fuller line of products
An auto-service establishment has estimated its monthly cost function as follows: Where Q is the number of cars it services each months and TC represents its total cost. The firm is targeting 35,000 net monthly profit servicing 2000 cars. What price ..
A perfectly competitive firm faces a:
The purpose of this assignment is to become familiar with the terms import and export, and then describe advantages or disadvantages of buying imports versus buying domestic products in relation to the fashion industry.
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