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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,
1.What two policies could you use to reduce the total amount of emissions?
2.Why do you think they each would work?
3.What would the benefits of each action be (besides emissions reduction)?
4.What would the costs of each action be?
5.How would you decide what was the best level of emission reduction?
Economic fluctuations (or business cycles) are fluctuations in the level of economic activity, relative to a long-term growth trend. Comparing and contrasting the economic fluctuation the United States has experiences from 1990 to current date.
as a result of increased tension in the middle east, oil production is down by 1.21 million barrels per day-a 5 percent reduction in the world's supply of crude oil explain the likely impact of this event on the market for gasoline and the market ..
Recall that Carson Company has periodically borrowed funds but contemplates a stock or bond offering so that it can expand by acquiring some other businesses. It has contacted Kelly Investment Company, a securities firm.
Why is income inequality regarded by many people as a form of market failure and describe how tax creditsare used in New Zealand to modify the distribution of income
How would population growth effect the dynamically efficient allocation, given the model in question 2 the second period has a higher demand for the depletable resource. What effect would the addition of population growth have on the efficient all..
The money supply of a country equals the sum of monetary base times the money multiplier. Monetary base equals the sum of domestic reserves and foreign reserves. Domestic reserves include the domestic government securities. The foreign reserves in..
Describe benefit and cost externalities. List the reasons for lack of optimal allocation of resources in each case. Explain the need for government intervention in case of market failure due to externalities. Explain why government intervention may n..
If the government wanted to encourage a monopoly to produce the socially efficient quantity, should it use a per-unit tax or a per-unit subsidy. Explain how this tax or subsidy would achieve the socially efficient level of output. Among the variou..
Some states are planning that ethanol be mixed with gasoline to comply with anti pollution laws. Ethanol can be made from corn. Determine what effect are these rules having on the equilibrium price and quantity of corn?
Do you think normal market forces adequately promote the sustainable development of non-renewable resources?
When the two countries didn't specialize the total production of jeans were 23 million pairs and a total production of rye was 68 million bushels . because of specialization the total production of jeans has increased by ______(3,6,9,12 million)..
Discuss one of the conflicts experienced by one of the protagonists in the films viewed. How does the conflict experienced by this character compare to or contrast with similar types of conflict people experience in everyday life.
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