Consider the issue of cigarette smoking. Please provide brief answers to each of the following questions. 1.   Justify the possibility of public intervention with a merit good argument. Is there, in this context, any basis for outlawing cigarette smoking? 2.   Justify the possibility of public intervention with an externality argument. Is there, in this context, any basis for outlawing cigarette smoking?

Q: Anecdotal evidence suggests that some insurance companies in Germany advertise specifically to certa...

A: In the insurance market, it can be seen that there is high risk or more probability to have market f...

Q: In order for something to function well as a medium of exchange, it must be Oa. readily and widely a...

A: When talking about exchange of goods and services in an economy, it can be said that an individual r...

Q: In a perfectly competitive market, the market price is $2, and firms are producing 100 units. At a q...

A: In a competitive market, the firm produces output where P= MC and for given price it gets the payoff...

Q: calculate the expenditure multiplier, if the marginal propensity to consume = .80, the tax rate = .2...

A:

Q: All Numbers are in S Billion Output Consumption Income Spending Net Taxes 100 Investment Government ...

A: In an economy, unplanned inventory refers to the amount of output gap between the actual output and ...

Q: Derive and extensively discuss the equi-marginal principle.When it is in the two commodity cases? Wh...

A: An equi -marginal principle plays an important role in cardinal utility analysis. The law of equi-ma...

Q: O b) When he consumes zero amount of good 2, his MRS12 is equal to 1

A:

Q: Natural resources are the decisive ingredient in any country's prospects for economic growth. True F...

A: here we state whether the give statement is true or false as given below;

Q: It is argued that a point spread or total on a sports contest in the betting market is similar to: ...

A: A betting market is the place where people try their luck on the basis of their analysis and future ...

Q: Consider the Swan-Solow model of economic growth. [Hint: Question (e) below goes beyond the subject...

A: The Solow–Swan model, sometimes known as the exogenous growth model, is a long-run economic growth m...

Q: 2.15 [Related to the Apply the Concept: “Are the Big Four Airlines Colluding?"] Airlines sometimes f...

A:

Q: How entrepreneurship contributes to the economy of a country?

A: In an economy, an entrepreneur is the person who comes up with new and innovative ideas, technology,...

Q: Nick has the following labour supply curve: Labour Supply W. W. w. LABOUR (Hours) the opportunity co...

A: Backward binding labor supply curve. Which shows that as wage increases, workers supply more hours o...

Q: Farmer Brown plants both soybeans and corn. If the price of soybeans increases and the price of corn...

A: The law of supply expresses that there is a positive connection among costs and amount provided or a...

Q: Consider the long-run equilibrium output, the potential output, the full-employment output, and the ...

A: The quantity of goods and services that are being produced in an economy during a given time span is...

Q: 1. IS-LM-AD Suppose the economy of Canada is governed by the following consumption function, investm...

A: With the given data:- [a] Deriving IS curve from goods market:- Y = C + I + G Y = 300 +0.6(Y-T)+700-...

Q: manufacturer!s total cost is C(x) = 0.1x3 - 0.25x2 + 300x + 100 dollars, where x is the level of pro...

A: We calculate the total cost with x=6 and x=6.1 and then see the difference. TC(6) = 0.1(6)3 - 0.25(6...

Q: 4) Listen Firms in oligopoly markets are playing a 'game' agpinst each other. True False Listen In g...

A: Oligopoly is a market structure where there are few sellers in the market competing against each oth...

Q: ee is $4. 1. The money supply per person is $2000. What is the value of the nominal interest rate? W...

A: Calculation interest rate of equilibrium:- Formula is :- TC = (I*Y/2N) + F*N Here, Total Cost = F*i ...

Q: Which of the following statements are true? (i) The absolute value of the price elasticity of demand...

A: (i) The absolute value of the price elasticity of demand is greater when substitutes are available. ...

Q: Question 3 . Bill Gates is the monopoly in the computer market and the sole employer of IT specialis...

A:

Q: 7..Assume that we have a fixed supply of a depletable resource to allocate between two periods. Assu...

A: Bank rate, also known as discount rate in American English, is the rate of interest which a central ...

Q: Consider a monopoly with the following marginal cost and demand curves: MC = 2Q + 200, p = 2,600 – 2...

A: For first price discrimination, the monopoly firm is able to charge prices equals to the consumers w...

Q: Which of the following statements is false? Quantity discounts is the same as second-degree price d...

A: Price discrimination means charging different price for the same good . There are three degree of pr...

Q: chere is excess demand for money at the prevailing interest rate, the likely response is until the q...

A: The quantity of money demanded decreases as the interest rate rises. The quantity of money demanded ...

Q: À firm that sells two goods (good 1 and good 2) has four potential customers with the reservation pr...

A: (A) As given the firm production cost is zero, profit maximizing firm will charge a price that is eq...

Q: Which of the following are reasons the European Union is considered a suboptimal currency area? Chec...

A: If an economy is at a suboptimal level, it is below the optimal or standard level. A suboptimal leve...

Q: One function of the Bank of Canada is... O a. Acting as the lender of last resort for the largest pr...

A: "Bank of Canada is Canada's central bank and a central bank provides financial and banking services ...

Q: What type of economists believe that markets naturally self-correct, and will reward good strategies...

A: Laissez fair economics theory advocates non-government intervention in the economic activity.  They ...

Q: Explain the reasons why lags in fiscal policy can create statements such as this: “The member of gov...

A: Fiscal policy refers to the one of the types of economic policies, which is implemented by the gover...

Q: Q-7: Given the three games table. Solve the game assuming mixed strategy. b1 b2 b1 b2 al 3 -2 ii al ...

A: Introduction Here we have different mixed strategy given. i)          b1       b2 a1     3-2-30 a2 N...

Q: If, at a given interest rate and money supply, everybody simultaneously tries to add to thel? money ...

A: The price of bonds and interest rates are inversely related to each other.

Q: The production of good x creates a negative externality on firms producing good y. Total costs are c...

A: Given: TC (x) = x2  px = 90 c(x,y)=y2 + 20x py = 20

Q: erry spends $ 10 a month on pet dispensers and uperman action figures. His marginal- utility-to-pric...

A: Marginal Utility alludes to extra utility by virtue of the utilization of an extra unit of a product...

Q: Fill in the blanks using the number that corresponds to the corect word or phrase in the word bank 1...

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...

Q: Consider a bargaining game with T = ∞ rounds of bargaining. At the beginning of each round the propo...

A: Given,  Bargaining game with T=∞ rounds of bargainingProposer makes an offer to split a surplus of s...

Q: For statistically estimated demand function for the commodity X, 1547 p0.2 p0.3 A0.4 p0.5 g0.3 D. X,...

A: Related goods: Two goods can be either substitutes or complements.  Substitute goods Two goods are s...

Q: In the above figure, the left hand side graph represents a perfectly competitive industry and the gr...

A: Perfect competition is an ideal type of market structure where all producers and consumers have full...

Q: Suppose a consumer's utility function is U(x,y) = min{x, y} For this utility function the optimal ch...

A:

Q: The LM curve is upward sloping since interest rate increase leads to output increase. TRUE or FALSE....

A: The liquid preference-Money supply curve shows the point at which the money supply and money demand ...

Q: Jerry spends $ 10 a month on pet dispensers and superman action figures. His marginal- utility-to-pr...

A: Money spent by Jerry = $10 Marginal utility to price ratio for pea dispenser = 40 Marginal utility t...

Q: Ed is a substitute lecturer. Every day he chooses between how many hours to work (denoted by L) and ...

A:

Q: Price 38 Supply 34 28 22 16 Demand 10 6 4 5 10 20 30 50 60 70 80 90 Quantity 40 2.

A: When the world price is less than the equilibrium price, then the domestic demand will be higher tha...

Q: The following graph depicts the daily labour supply curve for Jake, a worker in the construction ind...

A: Upward sloping labor supply curve for jake shows that there is a positive relationship between the w...

Q: A toy manufacturer's cost for producing q units of a game is given by C(q) = 1450 + 3.6g + 0.0006g. ...

A: p = 8.6 - (1/440)q p = 8.6 - 0.0023q TR = pq       = (8.6 - 0.0023q)q     = 8.6q -0.0023q2 TC = 1450...

Q: What is the function and use of the supply in the market? What are the causes that are responsible f...

A: Supply shows the functional relationship between supply and the factors that affects willingness and...

Q: what does it mean by productivity, why it is important and how to improve productivity growth for an...

A: An economy is defined as a vast network of interrelated production, consumption, and trade activitie...

Q: Which is NOT needed for the Fed to design and implement effective monetary policy to reduce the seve...

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

Q: Table 3-5 Assume that England and Spain can switch between producing cheese and producing bread at ...

A: Answer: Given,  

Q: What are deposits and the money supply if the required reserve ratio is 50% and reserves are 5,000 w...

A: The money multiplier is inversely related to the required reserve. It means as the required reserve ...