Tag: Economics – Others

Q1) Two firms can control emissions at the following marginal costs: MC1 =$200q1, MC2 =$100q2, where q1 and q2 are, respectively, the amount of emissions reduced by the first and second firms. Assume that with no control at all, each firm would be emitting 20 units of emissions or a total of 40 units for both firms.
Compute the cost-effective allocation of control responsibility if a total reduction of 21 units of emissions is necessary.
Compute the cost-effective allocation of control responsibility if the ambient standard is 27 ppm, and the transfer coefficients that translate a unit of emissions into a ppm concentration at the receptor are, respectively, a1 =2.0 and a2=1.0.
Q2) Assume that the control authority wanted to reach its objective in 1(a) by using an emissions charge system.
What per-unit charge should be imposed?
How much revenue would the control authority collect?

Question 91.5 pts1How does the demand of Western consumers for products made under RS (responsible sourcing) policies impact the ultimate effect of RS policies on Costa Rica?
No impact because we don’t buy products that get sold in Costa Rica
If western consumers are willing to pay more for RS-produced goods, the effects of RS policies in Costa Rica become more positive because it mitigates the impact of cost increases borne by local firms in Costa Rica of implementing RS policies
If western consumers are willing to pay more for RS-produced goods, the effects of RS policies in Costa Rica become more positive because it magnifies the impact of cost increases borne by local firms in Costa Rica of implementing RS policies
If western consumers are willing to pay more for RS-produced goods, the effects of RS policies in Costa Rica become more negative because we’re promoting the exploitation of Costa Rican workers

Consider the exchange rate between South Korea and Mexico
Typically, exchange rates vary over time, sometimes quite dramatically. The scenarios present various changes that may affect the exchange rate. Indicate whether each scenario will tend to cause an appreciation or depreciation of, or have no effect on, the value of the South Korean won relative to Mexican pesos.
A magazine publishes an article indicating that analysts expect the value of Mexican pesos to rise relative to South Korean won.
The central bank in South Korea announces that it will raise interest rates on government bonds.
Based on a World Bank report, the inflation rate in South Korea will be IS next year, whereas the inflation rate in Mexico will be lower.
The price of a specific basket of goods in South Korea is roughly 1.2 times higher than the price of an identical basket of goods in Mexico. Use this to justify the estimated PPP exchange rate.

Consider the following model of an imperfectly competitive, professional hockey franchise:
Total Cost, Average Cost, and Marginal Cost per home game
TC = 500,000 + 50Q
AC = 500,000 / Q + 50
MC = 50
[Professional sports teams are natural monopolies and the cost structure of a natural monopoly looks like this cost structure, with high fixed costs and low and constant marginal costs, so much simpler than the cost structures examined in class]
Willingness to Buy per home game: P = P(Q) = 500 – 0.015Q
Marginal Revenue per home game: MR = MR(Q) = 500 – 0.03Q
where Q denotes the number of seats in the arena in which the team plays its home games.
How many tickets/seats does this franchise sell to each of its home games and what price does the franchise charge? Show all work and explain. Graph your answer neatly and completely.
How much profit does this franchise make per home game? Show all work and explain.
Now suppose the franchise acquires a new

We’re luaving the competition behind:Cuppy’s Colfee Dive Thu Cale is the only colfee outlet sening hand roasted, hand blended collee to customers in less than 1 minute. Taste the difference.Cuppy’s Colflee franchise advertisement
How does Cuppy’s differentate its collee from Stabuds? What does the advertisement lell you shout the mukel structure? Do you expect Cuppy’s Cottee to have excess capacity and make an economic prote in he long run?
Cuppy’s differentiates its coffee from Sarbucks by ◻ The maket stucture in which Cuppy’s compeles is ◻B. selling colfee at a lower prioe; perfect competitionC. sening hand roasited, hand blended coffee; a monopoly in fle long runD. selling coffee at a lower price; an ologooly
In longene equition, Cuppy’s Collee q, have excess capactly and ◻A. does not, mates in economic peotiB. Joes, nazes an economic prothc. Goes not inous in economolosis0. does, mubes revo economic prote

Consider a country with two political parties, Party A and Party B. Party A cares more about unemployment than Party B, and Party B cares more about inflation than Party A.
When Party A is in power, they choose an inflation rate of s, and when Party B is in power, they choose an inflation rate of g. We assume that A > B.
The Phillips curve is given by π
t
= e
t
– a (u
t
– u
n
).
An election is about to be held. Assume that expectations about inflation for the coming year (represented by e
t
) are formed before the election. (Essentially, this assumption means that wages for the coming year are set before the election.) Moreover, we can assume that both parties A and B have an equal chance of winning the election.
If the central bank sets an inflation target and monetary policy is not affected by who wins the election because the central bank is independent, do the preferences of Party A and Party B matter?

Consider a country with two political parties, Party A and Party B. Party A cares more about unemployment than Party B, and Party B cares more about inflation than Party A. When Party A is in power, they choose an inflation rate of is, and when Party B is in power, they choose an inflation rate of g. We assume that a > g. The Phillips curve is given by n, = ne – a (u, – Un). An election is about to be held. Assume that expectations about inflation for the coming year (represented by g) are formed before the election. (Essentially, this assumption means that wages for the coming year are set before the election.) Moreover, we can assume that both parties A and B have an equal chance of winning the election. If the central bank sets an inflation target and monetary policy is not affected by who wins the election because the central bank is independent, do the preferences of Party A and Party B matter?

Many municipalitles are concerned about the environmental Impact of plastic bags, which often end up as litter, clogging drains, and hanging from tree branches. A town is considering whether to Impose a tax on plastlc bags to be collected at the store or a per person quota. CIndy and Carl are two average clitizens who both use plastlc bags when they go grocery shopping. Plastic bags are currently free when they shop. The figures below show each Individual’s demand curve for plastic bags. (A) Quota (b) tax Price Quantity of plastic bags
Instructions: Enter your answers for quantity as a whole number. Round your answers for price to two decimal places.
a. Under the quota, the willingness to pay for the last bag used for Cindy is $ and for Carl, $
b. Under the tax, Cindy will use bags and Carl will use bags. The willingness to pay for the last bag used for Cindy is $ and for Carl, $

Suppose the university imposed a​ $10 fee to cover the cost. This would raise the​ $40,000 necessary but might make many students upset. Which of the following is likely to happen if the decision to clear snow were put up for a​ university-wide vote?
A.A​ majority-rule vote would induce the university to start collecting money for snow​ removal, since all the​ 4,000 students would support the proposed decision.
B.A​ majority-rule vote would induce the university to stop collecting money for snow​ removal, since​ 3,000 students would not support the proposed decision.
C.A​ majority-rule vote would induce the university to stop collecting money for snow​ removal, since all the​ 4,000 students would not support the proposed decision.
D.A​ majority-rule vote would induce the university to start collecting money for snow​ removal, since​ 3,000 students would support the proposed decision.

Question 21 (3 points)From the list on your right select the letter that contains the word, phrase, name, etc that best matches the word, phrase, name, etc listed on the left.
Left:
Real Balance (wealth) effect
Sticky wages
The AD curve intersects the SRAS curve to the left of the LRAS curve
LRAS curve
Island of Puerto Rico ‘destroyed’ by Hurricane Maria
Duration: 3:07 User: n/a Added: 9/20/17
Right:
1. A decline in the overall price level improves the purchasing power of monetary wealth leading to increased spending.
2. AD curve shifts to the left
3. Possible decline in Chinese import from the U.S.
4. The level of Real GDP is fixed at a given amount regardless of the price level
5. A rightward movement along the AD curve to a lower level of real GDP demanded
6. Possible increase in U.S. export to China
7. No matter what the price level is, real wages remain constant.
8. Inflationary gap is observed