1. (50 Points) The Market For Salmon Is Characterized By The Following Curves: Q

Transcribed Image Text from this Question1. (50 points) The market for salmon is characterized by the following curves: Q = 140 – P (market demand) and Q=5P-100 (market supply), where P = price per pound, and Q = pounds of salmon. a) Graph the demand and supply curves for salmon. Clearly label both axes, as well as the y-intercepts for each curve. Solve algebraically for the equilibrium price and quantity in this market. b) Label consumer surplus and producer surplus on the graph. Calculate consumer surplus, producer surplus, and total surplus. Now suppose that there is a tax of $6 per pound on salmon fishing. c) Re-graph the demand and supply curves from part a). Now include the MC tax curve, as well. Solve for the quantity exchanged when the tax is in place. d) What is the resultant price that the consumer pays? What is the price the producer receives? e) Label consumer surplus, producer surplus, and government revenue on the graph. Calculate consumer surplus, producer surplus, government revenue, and total surplus. f) Calculate deadweight loss. Label the deadweight loss on your graph. Suppose instead that there is a subsidy of $6 per pound on salmon fishing, g) Re-graph the demand and supply curves from part a). Now include the MC – subsidy curve, as well. Solve for the quantity exchanged when the subsidy is in place. h) What is the resultant price that the consumer pays? What is the price the producer receives? i) Label consumer surplus, producer surplus, and government expenditure on the graph. Calculate consumer surplus, producer surplus, government expenditure, and total surplus. j) Calculate deadweight loss. Label the deadweight loss on your graph.

National Income: Where It Comes From And Where It Goes-End Of Chapter Problem Consider
Transcribed Image Text from this QuestionNational Income: Where It Comes From and Where It Goes-End of Chapter Problem Consider a Cobb Douglas production function with three inputs. K is capital (the number of machines), L is labor (the is Y – number of workers), and His human capital (the number of college degrees among the workers). The production function . The expression for the marginal product of labor (MPL) can be found by taking the partial derivative of the Cobb Douglas production function with respect to L: MPL – (-). From this equation, how does an increase in the amount of human capital affect the marginal product of labor? An increase in human capital will the marginal product of labor. raise b. The expression for the marginal lower iman capital (MPI) can be found by taking the partial derivative of the Cobb-Douglas production function with respect to N: MPH = From this equation, how does an increase in the amount of human capital (1) affect the marginal product of human capital? An increase in human capital will the marginal product of human capital Question of 11 > An increase in human capital will the marginal product of human capital mise c. Total income paid to labor in the lower the real wage times the quantity of labor. Under perfect competition, the real wage equals MP. and the real earnings to human capital equal MPH. Total income in the economy, Y, is determined by the production function. What are the income shares paid to labor (1.) and to human capital (H)? Human capital’s share of total income in the economy is 2/3 1/3 d. In the national incomes accounts, the share of national coing to workers in general would be e. An unskilled worker carns the marginal product of labor (MP4), whereas a skilled worker cars the mit roduct of labor plus the marginal product of human capital (MPZ MPW). Consider the answers to questions and above. How would an increase in the amount of human capital in the economy (more college degrees) impact the share of income going to both skilled and unskilled workers? Asignment Soares Hesources Hint Check Answer Quation of 11 Human capital’s share of total income in the economy is 2/3 1/3 d. In the national incomes accounts, the share of national going to workers in general would be ..An unskilled worker earns the marginal product of labor (MPL), whereas a skilled worker carns the mi froduct of labor plus the marginal product of human capital (MPL MPH). Consider the answers to questions and above. How would an increase in the amount of human capital in the economy (more college degrees) impact the share of income going to both skilled and unskilled workers? Decreasing returns means that increasing the number of college degrees in the economy will the wage decrease premium enjoyed by workers holding a college degree. Increasing the number of college degn the carnings of unskilled workers in the economy. incre increase decrease

Eq. 2 3. The Natural Experiment Is One Way That, If Used Carefully, Allows
Transcribed Image Text from this Questioneq. 2 3. The natural experiment is one way that, if used carefully, allows a researcher to make causal interpretation. Following our in class lecture, consider the specification, SunScreen = a Blemonade ytemperature te a. Say, you estimate the specification given by eq. 2 and find that 8 > 0. What does it say? b. Does the estimate of B after estimating specification given by eq, 2 allow you to make causal assessments? Why or why not? C. Report an external or a natural factor that directly affects the consumption of lemonade but only affects the consumption of sun screen through consumption of lemonade (that is the external factor does not directly affect the consumption of lemonade). Note that this valid extemal factor that meets the definition) is called “instrument” d. Logically explain how the use of a valid instrument allows you to causally identify the effect of lemonade purchase on demand for sun screen Com Shrestha Last updated 3 days ago w o

2nd Attempt If A Good That Generates Positive Externalities Is Priced To Internalize The
Transcribed Image Text from this Question2nd attempt If a good that generates positive externalities is priced to internalize the externality, then its price will increase and its output YNE Tilse 1st a remain constant Feedback Ha good that generates positive externalities is priced to internalize the externality, then its price will and its output Will 1st attempt Part 1 (1 pt) Feedback Suppose that a candy maker owns a building and is renting part of the building’s space to a doctor. Further suppose that because the candy maker is the owner, he has the right to make noise during the day while he makes candy. While the doctor cannot insist on a quiet environment, the doctor could move to a quieter building. However, rent in the next best building is $350/month more than rent in the noisy building. The candy maker can adopt a new technology that eliminates the noise for $275/month. Given this situation, can the doctor find a private solution with the candy maker that will make both better off? Yes, but then Part 2 (2 pts) Feedback What is the minimum and maximum payment the doctor would make to the candy maker to get the doctor to install the noise-reducing equipment? NOTE: Round your answers to the nearest dollar. Minimum: 225 Maximum: S 300 SOLUTION SUBM 11:13 AM 01 Question (2 points) See page 220 1st attempt The table below shows the marginal private benefits and the marginal private costs of flu shots. The marginal private benefits represent the market demand curve (Dint), and the marginal private costs represent the market supply curve (Sint). Quantity of flu shots Marginal private benefits Dinternal $2,500 Marginal private costs Sinternal $1,800 1,000 2,000 $2,250 $1,900 3,000 $2,000 $2.000 4,000 $1,750 $2,100 5,000 $1,500 $2,200 6,000 $1.250 7.000 $1,000 8.000 $750 $2,300 $2,400 $2.500 $2,600 9.000 $500 Suppose that getting a flu shot generates a positive externality, and the external benefit is $2,200 per thousand flu shots. Compared to the socially optimal amount of flu shots, the amount of flu shots taken at the market equilibrium is shots too 1st attempt All jurisdictions in the United States have laws against drunk driving with penalties ranging from lost driving privileges to jail time. But in many jurisdictions, establishments can also be held liable for selling alcohol to visibly intoxicated patrons who then cause accidents. In those locales, having drunk drivers on the road is a negative externality that both consumers and producers must internalize. The effect on the supply and demand curves for alcoholic beverages is to shift both curves to the left: as drinkers moderate their intake, demand drops from Dinternal to Dsocial, and as bars and liquor stores refuse service to drunk patrons, supply drops from Sinternal to social. Which point on the graph represents the social optimum in this situation? Mark your answer using the point tool. To refer to the graphing tutorial for this question type, please click here. Price Sint Duoc 06 Question (1 point) See page 22 1st attempt A city water district wants to encourage local businesses and homeowners to landscape with drought-tolerant plants. After disappointing results from a publicity campaign, the water district decides to subsidize local plant nurseries so they can offer the plants at a lower price. Suppose the graph shows the supply and demand curves for a drought-tolerant plant, such as purple sage. Drag the appropriate curve to show the impact of the water district subsidy. To refer to the graphing tutorial for this question type, please click here. 10 Market for Purple Sage Price LEE’S PICK You and your roommate need a break after taking midterms. For spring break, you decide to go camping together in Shenandoah National Park. After hiking for a few hours, you find a fantastic secluded spot near a small lake and set up camp for the week. The next day when you come back from fishing, you find out that another group of students has set up their camp right next to you. You realize after seeing the cases of beer they brought with them that they are not there to relax and most likely will disturb your peace and quiet. Can you use the Coase theorem to resolve this conflict? 1st attempt Part 1 (1 pt) Suppose that the nearby campers impose a cost of $600 on you and your roommate. If they had to move to a campsite where they could make as much noise as they wished, they would incur a cost of $400. Think of this as the cost of having to physically pack up their stutt and hike to another site. If they stayed and had to be quiet and not disturb you, they would incur a cost of $500. The park rules specify that whoever arrived first has a right to an undisturbed camping spot. Which of the following outcomes would be consistent with the Coase theorem? Choose one: O A. You would pay them $450 to move. OB. They would move, as the cost to keep quiet would be more than the cost to move O C. They would pay you $650 to stay where they are O D. They would pay you $300 to stay where they are. Part 2 (1 pt) Now suppose that the park rules specify that people have a right to pitch their tent wherever they want and can make as much noise as they want. Which of the following outcomes would be consistent with the Coase theorem? Choose one: Part 1 (1 pt) Suppose that the nearby campers impose a cost of $600 on you and your roommate. If they had to move to a campsite where they could make as much noise as they wished, they would incur a cost of $400. Think of this as the cost of having to physically pack up their stuff and hike to another site. If they stayed and had to be quiet and not disturb you, they would incur a cost of $500. The park rules specify that whoever arrived first has a right to an undisturbed camping spot. Which of the following outcomes would be consistent with the Coase theorem? Choose one: O A. You would pay them $450 to move. O B. They would move, as the cost to keep quiet would be more than the cost to move O C. They would pay you $650 to stay where they are. O D. They would pay you $300 to stay where they are. Part 2 (1 pt) Now suppose that the park rules specify that people have a right to pitch their tent wherever they want and can make as much noise as they want. Which of the following outcomes would be consistent with the Coase theorem? Choose one: A. They would pay you $450 to stay and make as much noise as they wanted. OB. They would pay you $700 to stay and make as much noise as they wanted C. You would pay them $550, and they would move. O D. You would pay them $550, and they would stay and be quiet. 12 Question (3 points) See page 230 Here’s an externality problem many of you may have encountered. Suppose that Dirk and Lee are two students at your university who are neighbors living in a duplex, in two connected apartments. Dirk is very studious and prefers that the building is quiet. Lee, on the other hand, likes to throw parties and prefers that the building is noisy. Suppose that on any given night the benefits to Dirk of quiet are $200, and the benefits to Lee of throwing a noisy party are $475. One could also say that the costs to Dirk of the party are -$200, and the costs to Lee of quiet are – $475. In the questions that follow, let’s see what happens depending on the rules set by the owner of the apartment building. V 1st attempt Part 1 (1 pt) Suppose that the owner rules that the building must remain quiet at all times. Thus, Dirk has a legal right to quiet. If this right cannot be negotiated, then the total net benefits to Dirk and Lee are $ Part 2 (1 pt) Now suppose that the owner rules that residents are free to throw a party any time they wish. Thus, Lee has a legal right to party. If this right cannot be negotiated, then the total net benefits to Dirk and Lee are $ Part 3 (1 pt) Now let’s apply the insights from the Coase theorem. Suppose we go back to Part 1 when Dirk had the right to quiet, but now assume that right can be negotiated so that lee could buy the right and throw a party. Assume that the gains from trading that right are split equally Les could buy the right for $ (give your answer to two decimal places).

On Markets, Demand And Supply Saved MC Qu. 01 Who Participates In Markets?… 2
Economics Assignment Writing ServiceTranscribed Image Text from this QuestionOn Markets, Demand and Supply Saved MC Qu. 01 Who participates in markets?… 2 Who participates in markets? 5 points Multiple Choice eBook Print Business firms. References Business firms and consumers. Consumers and government agencies. All of the choices are correct. Mc Graw Hill Education

1. What Are The Central Questions With Which Economics Of Public Sector Concerned? 2.
1. What are The central questions with which economics of Public Sector Concerned? 2. What are differing views Concerning the economic role of government? How have they changed over the years and what has given rise to those changes? 3. How do economists go about studying the economics of the public sector? 4. What are the principal sources of disagreement among economists about appropriate policies for the government to pursue?

1. What Amount Of Equal End Of Period Payments Is Required To Completely Pay
1. What amount of equal end of period payments is required to completely pay off a current loan balance amount of 23,000 if the interest rate applied is 8.0% and the desire is to finish payments 18 periods from now? 2. An increasing amount cash flow has been projected for an investment in renewable energy. Based on an increases in the amount charged per unit of energy and growth in energy use, the payment of 3800 per period with the first payment one period from now is expected to increase by 300 each period thereafter for a total of 18 periods. Using a discount rate of 11.0 percent, what is the present worth of this payment stream? 3. Royalties from a patent are expected to start at 15,000 per period beginning one period from now and to decline by 500 each period thereafter until the technology is withdrawn from the market 23 periods from now. What is the worth at the end of period 12 of this stream of payments both past and future using an interest rate of 8.00%? 4. Find the factor (P/A1,4.5%,8.0%,8).

Question 10 Al 11 > National Income: Where It Comes From And Where It
Transcribed Image Text from this QuestionQuestion 10 al 11 > National Income: Where It Comes From and Where It Goes-End of Chapter Problem When the government subsidizes investment, such as with an investment tax credit, the subsidy often applies to only some types of investment. This question asks you to consider the effect of such a change. Suppose there are two types of investment in the economy business investment and residential investment. The interest rate adjusts to equilibrate national saving and total investment, which is the sum of business investment and residential investment. Now suppose that the government institutes an investment tax credit only for business investment a. How does this policy affect the demand curve for business investment? The demand curve for business investment shifts to the right b. How does this policy affect the demanda remains unchanged sent? The demand curve for residential investment shifts to the left c. Consider the market for loanable funds. On remains unchanged Me the change in total investment demand, and (2) stion 10 of 11 > e. Consider the market for loanable funds. On the graph below. (1) indicate the change in total investment demand, and (2) indicate the new market real interest rate. Market for Loanable Funds Real Berest Rate (in percent) 0 2 10 14 svestment Chili full estan 10 of 11 ) 2 6 3 10 12 mentals of dollars) 16 20 National Saving Total Imetent (resential and business) d. Compare the old and the new market equilibria. The total quantity of investment remains unchanged increases e. The quantity of residential investment remains unchanged decreases 1. The quantity of business investment increases remains unchanged

Assignment Score: 54.76 Reos National Income: Where It Comes From And Where It Goes-End
Transcribed Image Text from this QuestionAssignment Score: 54.76 Reos National Income: Where It Comes From and Where It Goes-End of Chapter Problem Suppose that consumption depends on the interest rate. How might this alter the conclusions reached in the chapter about the impact of an increase in government purchases on investment, national saving, and the interest rate? If consumption depends on the interest rate, saving will also depend on it. In particular, the higher the interest rate, the greater will be the return to saving. Hence, the supply of loanable funds will be represented by an upward sloping rather than a vertical, curve Assume that the povernment borrows 54 billion to pay for its increased purchases. Adjust the graph below to reflect this change. Be sure to indicate the new market equilibrium Market for Loanable Funds The new experium interest rate is Speront c. Investment at the new equilibrium is 6 percent $8 billion d. consumption were not affected by $12 billion owding out would have resulted in private investment of $10 billion $14 billion $6 billion $12 billion plies that the more mption–and thus saving to changes in the interest rate the S10 hillon ill be the crowding out effect. smaller

17 Question (5 Points) See Page 236 One Early Example Of The Tragedy Of
Transcribed Image Text from this Question17 Question (5 points) See page 236 One early example of the tragedy of the commons occurred in the Middle Ages. Sheepherders would graze their sheep on a common pasture. Each herder wanted to feed his or her sheep so that they could get fat and therefore be sold for a higher price. But the more sheep there were on the common, the less grass there was for any single sheep. As a group, it would be better to limit the number of sheep on the common to maintain the resource. But each herder has an incentive to raise more sheep if the other herders are restricting the number of sheep they raise. Therefore, there is a conflict between what is collectively rational and what is Individually rational. Let’s look at a simple problem to see how this comes about 1st attempt Part 1 (2 pts) Suppose there are four villagers who can either raise sheep or bake bread. A sheepherder must buy a sheep for $200, raise it on the common, and then sell it at the market in a nearby town. The table below shows how much a sheepherder can sell a sheep for. In the same time it takes to bring a sheep to the market, bread bakers can make a profit of $35. You will need to copy the table and fill it in as you answer the questions. А Number of sheep feeding on the common Price of a sheep at market Profit earned from one sheep Total profit from sheep 1 $300 2 270 3 240 4 210 a. Assuming each villager acts independently, how many sheep will be raised on the common? b. What is the total income of all four villagers? $ Part 1 (2 pts) Suppose there are four villagers who can either raise sheep or bake bread. A sheepherder must buy a sheep for $200, raise it on the common, and then sell it at the market in a nearby town. The table below shows how much a sheepherder can sella sheep for. In the same time it takes to bring a sheep to the market, bread bakers can make a profit of $35. You will need to copy the table and fill it in as you answer the questions. Number of sheep feeding on the common Price of a sheep at market Profit earned from one sheep Total profit from sheep Additio on 1 $300 2 270 3 240 4 210 a. Assuming each villager acts independently, how many sheep will be raised on the common? 1 b. What is the 2 e of all four villagers?$ 3 Part 2 (1 pt) Suppose you are the village elder. You no longer raise sheep or bake. Instead, you sit around all day contemplating the meaning of life. One day you realize that the total profit of the village would be higher if fewer sheep were on the common. How many sheep should be on the common in order to maximize the village’s profit? sheep Part 3 (2 pts) Suppose there are two sheep on the common. A villager is considering adding another sheep. If the villager does, he or she is better off by $ compared to what he or she could earn as a baker. However, he or she imposes a cost of $ on the other two villagers who already have sheep on the common < 17:17 Part 1 (1 pt) You are a student at Ostrom College, studying economics and environmental science. As part of your course, you are looking at pollution levels in Lake Michigan. Your environmental science classwork determines that there are 15,000 tons of pollution in Lake Michigan. The graph below depicts the marginal benefits (MB) and marginal costs (MC) of pollution abatement, measured in millions of dollars per thousand tons. The local group Citizens for a Greener World argues that we should get rid of all 15,000 tons of pollution. As an economics student who understands marginal analysis, you know that we should reduce the amount of pollution, but not by 15.000 tons. On the graph below, use the plot point tool to plot the optimal point. To refer to the graphing tutorial for this question type, please click here. / Q2 Pollution Abatement in Lake Michigan Mand MC millions 1000 tona 112 104 30 30 T2 04 1 Part 2 (1 pt) Suppose that someone develops a new pollution reduction technology that is more efficient than current technologies. What will happen to the optimal level of pollution reduction? On the graph below, shift the appropriate curve to illustrate the change in the optimal level. $ 128 120 112 104 98 88 80 72 84 50 48 40 32 24 10 MB