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1. What types of solutions can address the tragedy of the commons?
2. What is the main prediction of the Coase theorem?
3. What are the two defining properties of public goods?
4. When is a public good being produced efficiently?
5. Why does the free-rider problem arise?
An economy can produce a maximum of either 28 million tons of wheat or 7,000 automobiles, or various intermediate quantities, as depicted in the table below: Wheat (millions of tons) A=28,B =27,C= 25,D= 22,E =18,F= 13,G= 7,H =0 Automobiles (thousa..
Home, Sweet Home. Suppose Ms. Profligate and Mr. Discipline both purchase identical $185,000 homes in Marietta, GA on January 1, 2012. They both have good credit and qualify for a loan with no down payment and 4.8% financing.
Both are normal goods for him; each DVD costs $10 and each cup of iced tea costs $2. For each of the following situations, decide whether this is Steven's optimal consumption bundle. If not, what should Steven do to achieve his optimal consumption..
Going to Medical School at the Age of 50. While we might admire someone who decides to attend medical school at the age of 50, explain using human capital theory why this is so rare.
Growth Fertilizer purchases a gravity settling tank by borrowing the $50,000 purchase price. The loan is to be repaid with four equal annual payments at an annual compound rate of 15%. It is anticipated that the tank will be used for 9 years and t..
Traditional free-trade theories are based on six crucial assumptions, which may or may not be valid for developing nations (or for developed nations for that matter). What are these crucial assumptions, and how might they be violated in the real w..
Consider two firms with identical assets. Company A is all equity financed and company B is financed with a mix of debt and equity. There are also two equally likely states of the world which will occur at time 1. Company B has debt with a face va..
There exist a single valid instruments zli. then the model is Select one: overidentified, underidentified and exactly identified
The documents related to the chosen sample may not be available for inspection.
Consider the market for earmuffs; there are two buyers, John and Joe. John has a demand function given by D(p)=16-3P and Joe has a demand function given by D(p)=30-2p. (both demand functions are implicitly bounded below by 0)
The only policy tools available to central banks are interest rates and the money stock.
what is the price level in 2010?b) what was the real GDP in 2011c) what was the velocity of circulation in 2011?d) what was the quantity of money in 2011?
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