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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, answer the following questions:
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?
What are the income effects from an increase in the price level, P, for a household that has a positive value of initial nominal bonds, B0, if B0 is zero or negative?
Demonstrate graphically the cost of income taxation of 30% to consumers and producers for an income of $27,908 and how does the taxation change if the income was $220,874?
Answer the following questions thoroughly utilizing key terms and concepts covered in the previous units.
What are the distinguishing characteristics of “public goods”? Give two examples of a public good. Why are public goods difficult for markets to allocate efficiently?
you have been hired by nobody state university nsu as a consultant to help the university with how to increase their
moral hazard and adverse selection are both examples ofa the principal-agentbexternalities in consumptioncefficiency in
The firms and workers in Alpha form expectations adaptively. The firms and workers in Omega form expectations rationally. Their otherwise identical economies are initially in equilibrium at the natural level of output with 10 percent inflation.
one is to convert the actually a nominal gdp number to a real gdp number. the other is to convert a nominal gdp growth
the following information is available for an economyconsumption functionc 220 .8y-tinvestment i 400net exports nx
What is the invisible hand principle Does it indicate that self-interset behavior within markets will result in actions that are beneficial to others What conditions are necessary for the invisible hand to work well? Why are these conditions impor..
1-nbsp consider the one-variable regression model yi betao beta1x1i ui and suppose that it satisfies the classical
Determine your optimal pricing strategy if you and your rival believe that the new Jeep is a "special edition" that will be sold only for one year. Would your answer differ if you and your rival were required to resubmit price quotes year after ye..
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