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You woke up in the morning and found a one once gold nugget under your pillow. Because you did not incur any sacrifice to obtain the gold, it seems free. Later you find out it is worth $400. If you continue to hold to the gold, rather than sell it is it still a free good?
Why does taxing a product lead to deadweight loss? Use an appropriate graph to explain why the deadweight loss is greater the more elastic the demand for a product.
Compute the opportunity cost of an increase in the number of hours spent studying in order to earn a 3.0 GPA rather than a 2.0 GPA. Find out opportunity cost of an increase in income from $100 to $150.00
Label the points representing choice C and choice D. If you are at choice C, what is your opportunity cost of increasing your chemistry score?
Markets are a very good way to organize economic activity in our economy. Why do we classify price floors and ceilings as a type of market failure and why does the government need to get involved in these types of markets
Second-degree price discrimination is also known as block rate setting. captures all consumer surplus. sets a different price for each customer.
A policymaker is deciding how to finance the construction of a new airport. He can either pay for it by increasing citizens' taxes or by printing out more money. What are some short run and long run consequences of each option
Whats her expected utility of having a car without insurance and what would be the price of a "Fair" full insurance plan? Would Chen buy full insurance for her car at this price
During the energy crisis of the 1970s, and again in the last 5 years, Congress bemoaned the "price gouging" and "windfall" profits of the major oil companies. In the 1970s Congress imposed an "excess profits tax" on these co..
What is an efficiency wage How might payment of an above-market wage reduce shirking by employees and reduce worker turnover How might efficiency wages contribute to downward wage inflexibility, at least for a time, when aggregate demand declines
The following data is presented on two mutually exclusive projects under consideration by the XYZ Company: Compute the following values for each project using the time value tables and Microsoft Excel.
Discuss the main factors (supply and demand) affecting the current price of gasoline. Include at least two supply and two demand.
Given your answer above, explain whether, all else equal, the supply of the IRP increases, decreases, or remains unchanged. Explain the reason for your answer and depict it on your graph above.
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