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It has been proposed that toll collection on the Massachusetts Turnpike, a key commuter route into Boston from the west, be discontinued. Proponents argue that tolls have long ago paid for the cost of building the road; now they just provide cash for tax bureaucracy. A number of economists are opposing the repeal of tolls on the grounds that they serve to internalize externalities. Explain this argument and discuss why the government often gets involved when finding solutions for externalities.
Describe briefly the reasons why the following transactions would or would not be included in GNP and compare and contrast stabilization policy recommendations of monetarists and activists.
What is real mortgage interest rate in 2001, 2002, 2003 and 2004? What are the values in 2000 dollars of the Nancy's monthly mortgage payments in the year of 2001, 2002, 2003, and 2004?
Suppose that a firm in a perfectly competitive industry has the following total cost schedule; Compute a marginal cost and an average cost schedule for the firm.
Write the equations for the IS and LM schedules. Find the equilibrium values for Y and r. Now assume the same figures as above but with a completely interest inelastic Investment (I). Write the new equations for the IS and LM schedules. Find the new ..
Explain demand for cassette players is price elastic also they are cyclical normal goods.
Elucidate how will looming fears of a recession expected to decrease consumers incomes by 4 percent over the next year impact the quantity of coffee Starbucks expects to sell.
Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system.
Identify at least four policies from the textbook that the government has created to impact economic growth and productivity.
Based on economist Albert Rees, there is evidence that contracts sometimes exist "among employers not to increase wages individually or not to employee away each other's workers
As in the case of oligopoly markets, rivals may select to compete aggressively, non-aggressively or in non-price dimensions.
Describe arbitrage and the law of one price. What role do they play in a market-based system. What do we call the 'one price' of an asset.
For an unknown reason, aliens kidnapped all immigrants residing in the US. One morning America wakes up and finds that the only people left in the country are American citizens, while all legal and illegal immigrants are gone.
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