Suppose a community faces a pollution problem because of
emissions from a polluter with MAC=36- 2E. The information on
pollution damages is given by MD=E .
(a) If there is a tax rate on emissions of $ 9/unit, then what is
the emission level choosen by the polluter in equilibrium? What is
the amount of its compliance costs?
(b) What is the socially efficient tax rate in the given
situation?
(c) Now imagine a situation where the polluter bargains with the
community ( let's say, with the community government) and offers to
pay $6 for each unit of emission ( i.e. $6/unit) it is allowed to
produce. What level of emissions is the community likely to allow?
What is the likely net gain to the community from allowing those
units of emissions?
In: Economics
Clinton Public Company Limited placed an advertisement on their web page as follows;
“Anyone interested in going to the moon? We can provide this service to you at a cost of Five million dollars. Call 800-MOON and book your flight.”
Donald’s dream since he was a kid is be the first in his family to go to the moon. He heard about the advertisement, via a friend and immediately logged on to Clinton’s web page for further details. Donald immediately thereafter called 800-MOON and booked his trip for December 22nd 2020, because he wanted to spend Christmas on the moon.
Donald’s wife Daisy subsequently discovered what her husband planned to pursue for the Christmas holidays and is furious. She was hoping that he should use his available monies to buy her a brand new Lamborghini. She confronted him on the issue and after a few hours of arguments, he agreed to buy her the Lamborghini and forsake his much-anticipated trip to the moon.
Donald called Clinton Public Company Limited and informed them that he no longer desired to go to the moon because of unforeseen circumstances. Clinton’s Customer Service Representative informed him that he had an agreement with them, because he accepted their offer when he called and booked his flight.
Donald is confused and is seeking your legal advice on this matter.
Use IRAC method and a case to answer.
In: Economics
- a) Calculate AE given the information below and completely fill in the table.
Taxes: $10 at each level of income
Investments: $15
Government Spending: $25
|
Total Income (AO) |
Taxes |
Disposable Income |
C |
S |
I |
G |
AE |
|
100 |
125 |
||||||
|
105 |
135 |
||||||
|
120 |
145 |
||||||
|
140 |
150 |
||||||
|
150 |
155 |
||||||
|
170 |
160 |
||||||
|
180 |
170 |
||||||
|
190 |
180 |
||||||
|
200 |
185 |
||||||
|
240 |
200 |
||||||
|
280 |
215 |
||||||
|
310 |
230 |
- b) Where is equilibrium in this economy based on the table? State the level, don’t just point to it or highlight it. (1 mark)
- c) Using the injections-withdrawals approach, demonstrate that the point you chose in part 2 is the equilibrium.At this point withdrawals = injections.
Injections-Withdrawals Approach
|
Item (Name the item here) |
Injections (place the $ amount in this column) |
Withdrawals(place the $ amount in this column) |
|
Totals |
In: Economics
In 100 words Decide American Apparel. please type
In: Economics
In early March, 2020, our state government announced tentative plans to move homeless people in to college dorm rooms. A. In your opinion, is this idea a good idea? Or a bad idea? Why? B. Would you make this program voluntary for homeless people? Or mandatory? Why? C. How vigorously would you enforce this program? Why? D. What penalties, if any, would you impose on homeless people for non-compliance? Why? E. In theory, what could ‘go wrong’ with the enforcement of this program? What other support services do homeless people require, in addition to housing? F. Moving homeless people into hotel rooms, (combined with support services), which our state has done on an unprecedented level, may be a better idea than moving them into college dorms. Why? G. In your opinion, what more should we be doing as a society to address this issue? Why?
In: Economics
As a producer, which market structure is more favorable? Please explain your answer.
In: Economics
21. To deal with smog problem, the local governments in China and India have been known to restrict vehicle use for a few weeks during periods of severe smog problem. One approach used is to allow vehicles to run on streets on alternate days only (for example, even-numbered vehicles on one day and odd-numbered vehicles the next day).
(i) Is this kind of approach an economomically efficient way to
get motor-vehicle emissions reduced to a desired/target level in
our society ? Explain.
(ii) Suggest how we can use an emission tax policy to reduce
motor-vehicle emissions to a desirable level in our society so as
to deal with smog problem like mentioned above. Will the emission
tax policy be cost-effective?
In: Economics
To deal with smog problem, the local governments in China and India have been known to restrict vehicle use for a few weeks during periods of severe smog problem. One approach used is to allow vehicles to run on streets on alternate days only (for example, even-numbered vehicles on one day and odd-numbered vehicles the next day).
(i) Is this kind of approach an economomically efficient way to
get motor-vehicle emissions reduced to a desired/target level in
our society ? Explain.
(ii) Suggest how we can use an emission tax policy to reduce
motor-vehicle emissions to a desirable level in our society so as
to deal with smog problem like mentioned above. Will the emission
tax policy be cost-effective?
In: Economics
With your team, imagine that the United States slapped an anti-dumping duty of 30 percent on aircraft parts imported from China that it believed were being dumped in the U.S. market. Imagine that China then slapped a 35 percent countervailing duty on U.S. auto imports, saying that a recent federal bailout is tantamount to an unfair subsidy for U.S. automakers. You will need to do some research on anti-dumping and countervailing duty to discuss the questions.
What motives do you think are behind China’s countervailing duty against U.S. autos?
2. Should countries experiencing economic difficulties be allowed to erect temporary tariff and non-tariff barriers? Explain.
In: Economics
Suppose that the pharmaceutical company Abstergo Industries successfully develops the first successful vaccine for COVID-19. If the United States government implements regulation that requires Abstergo to sell vaccine doses at marginal cost (rather than charging a higher price as it otherwise would), this will reduce Abstergo’s profit from the vaccine by $12 billion and increase the well-being of vaccine consumers by $17 billion, creating an overall efficiency gain of $5 billion. Explain why this regulation would not result in a Pareto superior outcome even though it would lead to an efficiency gain.
In: Economics
What are vulnerable populations? Why are they vulnerable? Where might you encounter vulnerable people in your daily life?
In: Economics
If the government imposes unit sales tax (i.e., $ tax per unit sold) on a product, which one, demand, or supply will shift? Increase or decrease? Will the new tax cause "disequilibrium"? Please state clearly about the shift (leftward or rightward) and the equilibrium price and quantity change. No graph is required.
In: Economics
Discuss the FED monetary policy with respect to the current economic situation at the domestic and international levels. Imagine being an economic consultant of the FED and advise the chairman with the best monetary strategy for the next year in less than 500 words. Support your viewpoint with data, analyses and empirical evidence.
In: Economics
Not enough or too much; it's a delicate balance. In this activity, you will select a country and explore the concepts of price ceiling and price floors and market shortages and surpluses.
Locate a recent article (published within the last year) that discusses either the price ceiling or price floor, and market shortages and surpluses of a good or service from your selected country at a macro level. You can use the Hunt Library, newspapers, new stations, or other credible sources to locate an article. Analyze your selected country's good or service and determine whether it has a market shortage or surplus. Include the following in your discussion.
Summarize your findings using at least 250 words and provide a minimum of one reference. Use current APA formatting to document your sources.
In: Economics