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What is the difference between a cost-benefit analysis and a cost-effectiveness analysis? Give an example of a situation in which a cost-benefit analysis would be appropriate and an example of a situation in which a cost-effectiveness analysis would be appropriate?
If the government imposes consumption tax on the good that raised prices by $1, by how much will the consumer's surplus change? Show the relationship between EV, CV, and consumer surplus using compensated and uncompensated demand curves. If you your..
At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces, and it faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve crosses ..
Explain how a firm in a competitive market identifies the profit-maximizing level of production. When should the firm raise production, and when should the firm lower prodcution?
If congress and the president decide an expansionary fiscal policy is necessary, what changes should they make in government spending or taxes what changes should they make if they decide a contractionary fiscal policy is necessary
In the early 1980's, planners were examining alternate sites for a new London airport.The economic analysis included the value of structures that would need to be removed from various airport sites. At one potential site, the twelfth-century Norma..
Early Classical economists found the subsiquent diamond/water paradox perplexing.
Make an analysis by answering questions below. Suppose that the Bank of Ecoville has the following balance sheet and the Fed has a 10% reserve requirement in place:
What is a consol bond? What is the duration of a consol bond that sells at a yield to maturity of 8 percent? 10percent? 12percent? Would a consol trading at a yield to maturity of 10 percent have a greater duration than
What is seignior age? In what sense is it an inflation tax? What are shoe-leather costs? What are menu costs?
What fiscal policy would you implement and why? Graph and explain the whole situation from start to finish, make up your own numbers. Make up your own MPC from that you will be able to derive the multiplier.
Discuss the role of corruption in the modern economy. Give specific examples of instances of corruption duringa) S&L crisis and the recession of 1991 b) Enron and the recession of 2001 c) Subprime mortgages and the recession of 2007
You expect to receive a payment of $104 one year from one. Your discount rate is 4 percent. What is the present value of the payment to be received? Suppose that the discount rate is 5 percent what is the present value of the payment to be received?
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