2 For each of the following programs, identify one or more "unintended" consequences: a Rent control b Minimum wages c Medicare (free hospital care to the aged) d Improved highways making suburbs more accessible to the city e Forced integration of central-city schools f Agricultural price supports g Lowering the speed limit to 55 miles an hour to save on gasoline h Providing health insurance to children who currently are underinsured i Banning advertising of cigarettes (Hint: Consider the consequences of increased life spans for the social security system.) j National testing standards for schools
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- The city of Bloomington is deciding if they are going to be able to justify an additional street light. The cost of the light to install is $14,000. City officials believe it will reduce the death rate at that intersection from 1.0% to 0.6%. Our guideline for valuing human life is $8M per person. What is the net of this cost benefit proposal? A. 32,000 B. 18,000 C. (18,000) D. (32,000)A large city currently provides free water service to residents. The marginal social cost of making a gallon of water available per month is estimated to be 5 cents no matter how much water is used. Currently, city residents consume 500,000 gallons of water per month. The costs of making the water available are financed by a local tax on city residents. a)Draw a graph to show that the current monthly consumption of water is not efficient. b)Show the net gains in well-being possible by applying a user charge of 5 cents per gallon to residential users. Assume that monthly consumption declines to 400,000 gallons after the user charge is imposed. Calculate the tax revenues that can be freed for other uses each month (including a reduction in taxes to local residents) after the user charge is imposed.Your city is expanding. There have been several problems with street flooding,which is affecting your business. You decide to attend a city councilmeeting, during which there is a discussion on building storm and sewerlines in advance of home construction. At the meeting, Tom Frank, thecity manager, states that the city is prohibited by law from financing theseprojects through a sales or property tax. He says that after the new homesare built, the city will be able to charge a monthly sewer fee to each homeownerand business. He asks for suggestions on financing the new sewersystem.a. What would you propose the city do to raise this money?b. Why is this investment vehicle attractive to investors?
- Everyone was affected by the economic impacts of COVID-19 including nonprofits. Donations plummeted and volunteers dried up but the community's need for help only grew. The table below provides information for the Transformation Station, a nonprofit that focuses on people experiencing homelessness for the first time. Transformation Station has determined they need a bigger storage facility. They first need to perform a sensitivity analysis to determine whether to build a larger storage facility. Part 1: Perform a sensitivity analysis (aka net present value) for the three options above. Show work Part 2: Remember that we have very little control over whether the Conservative, Most Likely, or Optimistic Estimate is realized. In other words, this analysis is similar to saying, "Well, we don't know exactly how much it will cost or how much you will save. However, we have done some analysis - based on the current economic environment - and we believe it will be somewhere between the…A large city currently provides free water service to residents. The marginal social cost of making a gallon of water available per month is estimated to be 5 cents no matter how much water is used. Currently, city residents consume 500,000 gallons of water per month. The costs of making the water available are financed by a local tax on city residents. a. Show the net gains in well-being possible by applying a user charge of 5 cents per gallon to residential users. Assume that monthly consumption declines to 400,000 gallons after the user charge is imposed. Calculate the tax revenues that can be freed for other uses each month (including a reduction in taxes to local residents) after the user charge is imposed.A nonprofit decides to provide free food for the homeless in Thanksgiving holidays. The manager wants to write a proposal to raise money from their donors. Assume that the project requires a fixed cost of $5,000 for staff and equipment. The variable cost such as utensils and food is $5 per person served. Based on the manager's experience, the manager estimates there will be 200 homeless people to serve. What is the price per person that the manager should put into his/her proposal? a.$5 b.$30 c.$25 d.$5,000
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- A capitated managed care agreement with the city will bring in 400.00/month for 20 city employees, regardless if they are sick or not. Using differential cost analysis how do you calculate the full cost gain/loss and the differential cost gain/loss for two scenarios: keeping the agreement and killing the agreement?At the beginning of the new year, Mumford Regional's chief competitor is planning to open a brand-new Women's and Children's Hospital nearby. As a result, Mumford expects all its supply needs to decrease by 20%. Currently it's contracted vendor is Vendor C, using the information in Exhibit 10-14, determine whether if Mumford should change its contracted vendor to Vendor A or Vendor B. Enter total expense for using Vendor A. Enter total expense for using Vendor B. Enter total expense for using Vendor C. Which vendor should Mumford select? Enter Vendor A, Vendor B or Vendor C as your answer. Exhibit 10-14 Alternative Vendor Options for Mumford Regional Volume of Vendor A Vendor B Vendor C Supplies Unit Total Unit Total Unit Total Supply Needed Price Cost Price Cost Price Cost Item 1 88,000 $ 2.35 $ 206,800 $ 2.42 $ 212,960 $ 2.28 $ 200,640…The President of Ghana launched the COVID-19 business alleviation program in collaboration with the National Board for Small Scale Industries (NBSSI), Trade Associations, and some selected banks. Under the program, the government is givingfunds without interest to selected financial institutions for onward lending to businesses at a 3% interest. The program is aimed at helping beneficiaries to sustain their businesses during the Covid-19 pandemic. Use this information to answer the following question. a.Explain the expected impact of the low-interest rate program on grossdomestic product (GDP), articulating the possible pathways.