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Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant,
What two policies could you use to reduce the total amount of emissions?
Why do you think they each would work?
What would the benefits of each action be (besides emissions reduction)?
What would the costs of each action be?
How would you decide what was the best level of emission reduction?
If Deltas managers needs to follow a constant payout ratio dividend policy
In classe, we showed that any player 10s strategy b0 1 > v1 is weakly dominated by strategy b1 = v1. Combine the above two statements, what conclusion can you draw Why this conclusion is relevant if we want to show (b1 = v2; b2 = v2) is the domina..
Suppose the government is running a surplus (rather than a deficit) and aggregate demand is so high that any further increases in spending will cause only inflation, with no increases in production. What should the government do with the extra mon..
Derive the golden rule savings rate for this economy. (Hint it will be 35 percent) What would be the new level of steady state y, c, s, k if the economy moved to the golden rule savings rate?
Elucidate how an attempt by the government to lower inflation could cause unemployment.
Your hospital is considering opening a satellite urgent care center about five miles from your main campus. You have been charged with gathering demographic information that might affect the demand for the center's services. What data are likely t..
Aggregate supply reflects billions of production decisions made through, consumers when they decide which products to buy.
These schedules reflect the fact that, prior to the period we're examining, decisions makers entered into contracts and made choices anticipating that the price level would be P105.
Total population coincides with total workers and is denoted by L and compute the Solow residual and describe clearly the changes that occur to the graph and compare the final result with the initial situation
2. If you were to own a firm within a purely competitive industry, what kind of profit margins would you expect to enjoy 3. What role does advertising have in pure competition
What should the company look for in terms of software for this project in addition to an interface with their accounting system In addition to serving as a convenience for its customers and increased sales, what other benefits can Outdoor Gear, Inc...
When will the Fed want to raise the Federal funds rate? What is the ultimate effect on real GDP and the inflation rate from raising the federal funds rate?
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