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Question: Consider the market for education.
(1) Why might education exhibit positive externalities?
(2) Describe a government policy to internalize the positive externality of education. Show the effect of the policy in a graph.
Microeconomics, Economics
Question: Pricing Strategy & Elasticity (15 points) Best Buy stocks two types of merchandise: a private-label portable DVD player and DVD disks as a complementary good for the DVD player. Originally, Best Buy priced the ...
Question: Corporate directors are either insiders who hold (or have held) important positions within the company or outsiders who have achieved distinction elsewhere. a. Why do you as a shareholder probably prefer that t ...
Question: Compare two cars A and B. The initial cost of Car A is $500 more than Car B. However Car A consumes 0.01 less gallons/mile compared to B. Given that B's salvage value is $100 smaller than A's after an expected ...
Question: What is the time value of money and how can compound interest be used to calculate the present value of any future amount of money? How is the word "risk" used in financial economics and what is the difference ...
Question: Discuss how recessionary and inflationary gaps may restore full employment according to the Keynesian perspective. show the appropriate graph to support your explanation. The response must be typed, single spac ...
Question: Radio stations, tornado sirens, light houses, and street lights are all public goods in that all are nonrivalrous and nonexclusionary. Therefore why does the government provide tornado sirens, street lights and ...
Question: (The existence of the Electoral College is one indicator that the United States is not a true democracy in terms of representation. In a true democracy, each individual vote would count in a presidential electi ...
Question: 1. The Widget Company has the following production function. Number of Workers 0 1 2 3 4 5 Number of Cases produced 0 9 17 24 30 35 If widgets sell for $6 each and the wage rate is $33, how many workers will th ...
Question: 1. Consider the Rothschild-Stiglitz adverse selection model that we discussed in the class. Suppose a competitive insurance company proposes an insurance policy that provides full insurance to all individuals, ...
Question: Suppose that there are only three types of fruit sold in the United States. Annual sales are 1,200,000 tons of blueberries, 5,400,000 tons of strawberries, and 11,000,000 tons of bananas. Suppose that of those ...
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