Pollution is a negative externality. Why is it that the social optimum in a market that generates pollution will, generally, not result in zero pollution?

Q: Assume the Federal Reserve has forecasted inflation over the next year to be over its target. Becaus...

A: Answer:- (a) making small changes in interest rates over time.

Q: Namia's output has been constant at Y every year. In year 0, it finds an investment project that wil...

A: Output = Y Output increases by 0.05Y each year from year 2. Interest rate = 4% = 0.04

Q: BDO pays 8% simple interest on its savings account balances. BPI pays 7% interest compounded annuall...

A: For BDO it is given that Principal amount (P) = P5000 Interest rate (r) = 8% Time(t) = 10 years For ...

Q: Determine the monthly mortgage payment for an $80,000 loan at 5% interest when it’s borrowed for 30 ...

A: The monthly installment will depend on the value of interest rate and duration of loan amount.  This...

Q: 1. For each of the following scenarios explain, with the aid of an IS-LM diagram, what happens to eq...

A: The IS-LM model, which stands for "investment-savings" (IS) and "liquidity preference-money supply" ...

Q: Tammy enjoys fixing up old clocks, which she then sells for p. = 100 each. Her cost of fixing each c...

A: Given that, Maximizing profit of Tammy is, π(c)=100c-2c-c2differeniate wrt c100-2-2c=0c=49

Q: Consider the following open economy SI model set up Y = 18000 C = 300 + 0.8(Y − 2500) I = 3500 − 400...

A:

Q: The vertical difference between TVC and TC is equal to

A: To find : What is vertical difference between TVC amd TC. 

Q: When the price of shirts emblazoned with a college logo is $20, consumers buy 150 shirts per week. W...

A: According to the question,  When the price of a college logo t-shirt is $20, people will buy 150 sh...

Q: Bob loves clothes. His favorite activity is to go shopping at the mall and try on new clothes. He lo...

A: Bob is a fashionista. H e wishes he could afford all of the designer clothing he desires. Unfortunat...

Q: Country A is a Solow economy with the following production function F(K, L) AK" L', with A and L exo...

A: At steady state, there is no change in capital per worker and steady state is reached where investme...

Q: Suppose people in the adult population in a small country are classified based on their age. Labor F...

A: Labor force participation rate= Labor forceTotal population*100 where the labor force is the sum of ...

Q: Select one: O Neither country has a comparative advantage in the production of timber or honey. O Le...

A: Comparative advantage arises when the country produces good at lower opportunity cost than other cou...

Q: Part E On the attached graph paper, draw the Supply Curve for the Supply Schedule below. Anton's Bar...

A: Supply Curve: - supply curve is the graphical way of showing the relationship between the quantity s...

Q: Smith consumes all his income. Draw his consumption and saving schedule.

A: Consumption and saving The use of products and  the services by households is referred to as consump...

Q: Last year a country had exports of $100 billion, imports of $70 billion, and purchased $60 billion w...

A: To find : Value of domestic assets purchased by foreigners. 

Q: 6. Four (TYPE I) firms sell Product X in competitive markets at a price of 10. They each operate wit...

A: As the price level in competitive market is constant and marginal revenue does not change optimal de...

Q: a) The construction of a beach-front resort has led to erosion of the seabed,  destruction of corals...

A: Please find the answer below.

Q: In 2002, a meeting is hold in a state-owned farm with one million mu of arable land—B farm after the...

A: Given,  A meeting held in a state owned farm with One Million Mu of arable land after harvest

Q: In an increasing cost industry, the long-run market supply curve is _____ because the long run _____...

A: The expenses that are being incurred by the business for carrying out transactions are known as cost...

Q: Apart from local unemployment, brain-drain or the immigration of local Filipino experts and talents ...

A: Brain Drain:-  Brain drain is characterised as extremely competent or educated persons migrating to ...

Q: 39. At the point of satiety, marginal utility is

A: To find : What is marginal utility at point of satiety. 

Q: In September 2008, the growth rate of the M1 money supply was zero, while the growth rate of the M2 ...

A: September 2008 data:- Growth rate of M1 = 0 Growth rate of M2 = 5% July 2009 data:- Growth rate of M...

Q: 1. What are the advantages and disadvantages of collusion ?  2. In a stackelberg game, what is the...

A: 1. Collusion is the tacit cooperation or agreement of two or more people to deceive others in order ...

Q: Which of the following did A. W. Phillips demonstrate in his famous Phillips curve? a. An inverse re...

A: The original Phillips curve equation is πt = (μ+z) - αut The modified Phillips curve equation is πt ...

Q: Suppose an economy's production consists only of corn and soybeans. In 2010, 20 bushels of con are s...

A: Formulas: Nominal GDP = Price of the goods in current year * Quantities of the goods in current year...

Q: 48. One characteristic not typical of oligopolistic industry is

A: Oligopoly is a form of the market which has these characteristics: 1. Small number of big firms 2. H...

Q: Suppose the price of laundry detergent increases from $7 to $9 per bottle. If the quantity demanded ...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

Q: Financial liberalization is eliminating various forms of government intervention in financial market...

A: The liberalization refers to the process of reducing the government intervention in the economic act...

Q: Describe the original rationale and purpose of the creation of a “minimum wage. When did this happen...

A: The original rationale and purpose of the creation of a “minimum wage The minimum wage was establish...

Q: 2. A machine costs PhP 300,000 with a salvage value of PhP 50,000 at the end of it's life of 10 year...

A:

Q: Currently, Social Security is funded by current taxes. It is projected that in 2024, current taxes w...

A: Social Security benefits are funded by a dedicated payroll tax, which workers pay into as they earn ...

Q: Using the 3-equation model and provide a detailed period by period description of the adjustment pro...

A: The total quantity of demand for all completed products and services produced in a given economy is ...

Q: The following graph shows the labor market for research assistants in the fictional country of Acade...

A: Labour economics seeks to comprehend the operation and dynamics of wage labour markets. Labor is a c...

Q: In a classical economy, where wages and prices are perfectly flexible, an increase in the money supp...

A: The answer is - b. Increase the price level

Q: 47. A firm encounters its 'shutdown point' when A. O Average total cost equals price at the profit-m...

A: The expenses that are being incurred by the firm for carrying out its day-to-day transactions are kn...

Q: When the interest rate increases, the opportunity cost of holding money a. decreases, so the quantit...

A: In the mentioned question, we have been asked about the relationship between interest rate and the o...

Q: What is the law of diminishing returns and what does it imply about the shape of the firm’s average ...

A: Returns to scale is an important concept in economics which studies how the output is affected if ad...

Q: Which of the following transactions would NOT be counted in GDP? Select one: a. Nike builds a retail...

A: GDP refers to gross domestic product which is accounted by addition of all the values of final goods...

Q: What are the factors in drivers globalization that increase of globalization link between economies?

A: GLOBALIZATION:-   aincrease international trade and foreign investment   Definition: Globalization h...

Q: Explain the relationship between demand, indirect utility and expenditure functions and discuss thei...

A: A consumer's desire to acquire items and services, as well as their willingness to pay a price for t...

Q: Siven that the revenue function, R (x) = 26x - 2x and the cost function, C(x) = 6x + 20. Find %3D %3...

A: Profit refers to the difference between the total revenue and total cost. Profit = TR-TC.  

Q: Consider two markets: the market for motorcycles and the market for pancakes. The initial equilibriu...

A: The elasticity of supply is the responsiveness in quantity supply due to changes in price.

Q: Consider a small open economy. Assume that GDP (Y) is 5000. Consumption (C) is given by the equatio...

A: Exchange rate is defined as the value of a currency that is given in terms of another currency. It i...

Q: Economic efficiency of the legal process with respect to law suits requires the minimization of Ca +...

A: A general economic analysis of the law does not place its function withiñ the framework of common le...

Q: Suppose that actual inflation is 4 percent, the Fed's inflation target is 2 percentage points, and u...

A: Given: Actual inflation=4% Inflation target=2% Unemployment rate=2 Full employment rate=4%  

Q: the capital-abundant country after it trades with the other nation

A: A country that is capital abundant will export capital-intensive goods that are countries that have ...

Q: B. Which one of the following is the task of the Planning Commission? Drenaration of tbe plan

A: To find : Which is task of planning commission. 

Q: Two firms compete in prices in a market for a homogeneous product. In this market there are N > 0 co...

A: The equilibrium price is the price that is achieved where the demand curve of the market is equal to...

Q: The real deficit is the nominal deficit adjusted for inflation's effect on the debt.  [True or False...

A: The real deficit is the nominal deficit adjusted for inflation's effect on the debt. - TRUE