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Q. Sometimes market activities (production, buying and selling) have unintended positive or negative effects outside market's scope. This is called an externality. Suppose that you are a policy maker concerned with correcting effects of gases and particulates emitted by and local power plant. What tools would you use? What would be benefits of action? What would be costs? How would you decide what was best level of emission reduction? Why do you think your approach would be better than others?
Studies Explain how among which of the delivery curve bananas have shifted. All of the subsequent could be possible explanations for the shift except one. Which is the exemption.
Elucidate how the solow growth model differs from models of endogenous growth with respect to the sources of technological progress and returns to capital.
Elucidate how absolute also comparative advantages were used in your simulation. Elucidate the influences affecting foreign exchange rates.
What will happen to nominal GDP and the price level next year if the Fed keeps the money supply constant. Elucidate what money supply should the Fed set in year 2009 if it wants to keep the price level stable.
Assume the economy starts out at point A. After that, the public anticipates that the Fed will use expansionary monetary strategy to shift the AD curve from AD1 to AD2.
If you were a manager at PepsiCo, would you try to convince your colleagues that introducing the new soft drink is the most profitable strategy.
How did increased competition and excess capacity impact firms in consumer goods industry in late 19th century. Why were horizontal mergers attractive to these firms.
By what reasons financial crisis as well as either United States is going in right-wrong direction among its present strategies.
Illustrate what does this suggest about demand elasticity for drugs. Could it be that this experiment didn't actually measure elasticity very well and that elasticity is quite large.
Oil and gasoline prices are a concern in the United States. Why does this economic problem exist from a supply and demand perspective, what can be done to improve resource allocations.
Suppose the government implements a policy that subsidizes business investment. Explain how will this affect the relationship between investment and the interest rate.
A federal government agency that purchases certain types of home mortgages, buys U. S. Treasury bonds from another government agency, elucidate how would this affect the net public debt, other things being equal.
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