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: Suppose that 100 people live around a hazardous waste dump. If the people continue to live there for 20 years, one of them will likely contract a painful, non-fatal cancer that will lead to $1 million in health care costs, foregone wages, and pain and suffering. Assume this is all the damage this waste will ever do (the waste loses its toxicity after 20 years). The Environment Canada has three choices:
a. Do nothing.
b. Clean up at a cost of $4 million
c. Relocate the families at a cost to taxpayers of $1 million; fence off the property for 20 years.
i. Rank the solutions in terms of efficiency. Explain your reasoning.
ii. Rank the solutions in terms of safety. Explain your reasoning.
factors in economic growth
Explain clearly the liquidity preference theory of interest propounded by j.m.keynes
Explain, using the best framework you can think of (based on our class discussion), the effect of a large federal deficit on interest rates.
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