Can you please answer these two questions The Texas Enterprise Fund (TEF) was an issue in the gubernatorial campaign in 2014 (Greg Abbott v.Wendy Davis). Why?O because Greg Abbott's law firm had received TEF funds, yet it did not create the required 75 jobsO because an audit revealed that some $200 million had been dispersed for political reasons, that TEF fundswere dispersed to companies that had given money to the Republican PartyO because Wendy Davis's law firm had received TEF funds, only because she agreed to drop her efforts topersuade the legislature to adopt Medicaid ExpansionO because the TEF had been responsible, at least in part, to Texas's great job creation record, and Greg Abbottclaimed to be one of the architects of the TEF back in 2003zzes/1292454/take#MacBook Air Suppose the Texas Legislature sends the governor a bill that will provide funding for the University ofHouston, for the construction of new prisons, and for advertising to encourage major corporationsto relocate their headquarters to Texas. What are the governor's veto options?O If the governor wants to veto the funding provision for advertising, then the governor will have to veto theentire bill, including the funding provisions for UH and for new prisonsThe governor can approve funding for UH and for new prisons, but he can also veto funding on theadvertising provisionO If the governor wants to veto the spending provision for advertising but approve funding for UH and for newprisons, then the governor would have to obtain the approval of the Legislative Budget Board (LBB)MacBook Air74F880O00000 F4F6F7F5

1 B an audit revealed that some $200 has been released from the TEF for the political reasons.…

The Texas Enterprise Fund (TEF) was an issue in the gubernatorial campaign in 2014 (Greg Abbott v. Wendy Davis). Why? because Greg Abbott's law firm had received TEF funds, yet it did not create the required 75 jobs because an audit revealed that some $200 million had been dispersed for political reasons, that TEF funds were dispersed to companies that had given money to the Republican Party O because Wendy Davis's law firm had received TEF funds, only because she agreed to drop her efforts to persuade the legislature to adopt Medicaid Expansion O because the TEF had been responsible, at least in part, to Texas's great job creation record, and Greg Abbott claimed to be one of the architects of the TEF back in 2003

The Texas Enterprise Fund (TEF) was an issue in the gubernatorial campaign in 2014 (Greg Abbott v. Wendy Davis). Why? because Greg Abbott's law firm had received TEF funds, yet it did not create the required 75 jobs because an audit revealed that some $200 million had been dispersed for political reasons, that TEF funds were dispersed to companies that had given money to the Republican Party O because Wendy Davis's law firm had received TEF funds, only because she agreed to drop her efforts to persuade the legislature to adopt Medicaid Expansion O because the TEF had been responsible, at least in part, to Texas's great job creation record, and Greg Abbott claimed to be one of the architects of the TEF back in 2003

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 2SCQ: Classify the following as a government-enforced barrier to entry, a banker to entry that is not...

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Suppose that the government wishes to encourage the manufactureand sale of small cars. The current supply and demand of small carsare: Qs = −(10/9) + (1/9)P; Qd = 100 − P, where Q is in millions ofcars and P is in hundreds of dollars.Now, suppose that the government is considering two alternative plansfor encouraging small car sales. Under Plan A, every car manufacturerwill receive a $500 rebate from the government for each car sold. Underplan B, every purchaser of a small car will receive a $500 rebate fromthe government.Which of the plan is more effective in encouraging sales? Show bycomputing the equilibrium quantity under each plan.
a) If the only goal of a regulator of a natural monopoly firm that charges a uniform price is to ensure that the firm produces the socially optimal level of output, and the regulator has the authority to order the firm to do so, explain why this power could not be exercised when the viability of the firm is taken into account. b) Explain why a regulator, whose sole objective is to ensure that a monopoly firm produce the socially optimal output, would have no need to do anything if the firm were a perfectly discriminating monopoly. c) If the market demand curve is common knowledge for a natural monopoly firm and a regulator, but unlike the firm, the regulator has no information about the firm’s cost curves. Explain how a regulator could incentivize the firm to produce the socially optimal output, bearing in mind that the regulator does not even know which level of output is socially optimal?
Suppose the market for auto insurance is made of up two types of buyers: high-risk and low-risk. Buyers’ willingness to pay (WTP) for auto insurance plans, and sellers’ willingness to accept (WTA) when selling plans to each type of buyer, are outlined in a photo (a) In a world with perfect information, would the market for insurance plans clear? If not, why? If yes, what are some prices that would a llow both markets to clear? The prices in each market are allowed to differ Assume now that there is asymmetric information and that insurance companies do not know how risky an individual buyer is. In the face of this uncertainty, they determine that the probability that a “walk-in” is high-risk is 0.75. What is the minimum price sellers are willing to accept when selling an insurance plan? At this price, will low- and high-risk buyers both be willing to purchase this insurance plan? Explain. Be sure the mention adverse selection in your answer.
1. Suppose the government is considering a ban on smoking in restaurants in Tobaccoville. There are 1 million residents in Tobaccoville, and each resident would benefit by $200 from the smoking ban. However, there are two large tobacco companies in Tobaccoville, and the ban would cost each company $5 million. What are the proposed policy's total costs and total benefits? Why would the proposed smoking ban likely fail? 2. To ensure safety and efficacy, the Food and Drug Administration regulates the medicines that pharmacies are allowed to sell in the US. Sometimes this means that a company must test a drug for years before receiving FDA approval and reaching the market. We can easily identify the "winners" in this system as those who are protected from unsafe drugs that might otherwise harm them. Who are the more "anonymous losers" who suffer due to the strict FDA medical regulations?
1.17. Jones and Smith are running for public office. There are 99 voters.(a) Suppose the rules say that Jones wins if she receives 50 or morevotes; otherwise Smith wins. Is this method neutral?(b) Suppose the rules say that a candidate wins if he or she receivesa number of votes that is between 60 and 89. (If neither candidategets a winning number of votes, then the election is a tie.) Is thismethod monotone?(c) Suppose the rules say that a candidate wins if he or she receives anodd number of votes. (If neither candidate gets a winning numberof votes, then the election is a tie.) Is this method decisive?(d) Suppose that the rules say that Smith wins the election no matterwhat. Is this method anonymous?
Say that the government is considering a ban on smoking in restaurants in Tobaccoville. There are 1 million people living there, and each would benefit by 200 from this smoking ban. However, there are two large tobacco companies in Tobaccoville and the ban would cost them $5 million each. What are the proposed policys total costs and benefits? Do you think it will pass?
Classify the following as a government-enforced barrier to entry, a banker to entry that is not government enforced, or a situation that does not involve a barrier to entry. A City passes a law on how many licenses it will issue for taxicabs A city passes a law that all taxicab drivers must pass a driving safety test and have insurance A well-known trademark Owning a spring that offers very pure water An industry where economies of scale are very large compared to the size of demand in the market
When Microsoft was founded, the company devoted very few resources to lobbying activities. After a high-profile antitrust case against it, however, the company began to lobby heavily. Why does it make financial sense for companies to invest in lobbyists?
Do you think it is possible for government to outlaw everything that businesses could do wrong? If so, why does government not do that? If not, how can regulation stay ahead of rogue businesses that push the limits of the system until it breaks?
Suppose that you are an economic-policy advisor. Environmental groups are pressuring you toimplement the highest-possible carbon tax, whileindustry groups are pressuring you to implementno carbon tax at all. Both argue that their positionmakes more sense economically. Explain to themwhat the most-efficient tax level will be, and whythere are costs to setting the tax too high or toolow
Adam Smith proposed taxing ‘Sugar, rum and tobacco’ because they are: “nowhere necessaries of life” “objects of almost universal consumption” In consumer theory economics, what is the difference between a necessity and a luxury good. What is the likely difference in the tax revenue obtained from a tax imposed on a necessity versus a luxury good? Explain and illustrate with appropriate figures. Question Requirements: Identify the difference between a necessity and luxury and provide an example. Highlight ability to identify the link of this definition to tax revenue. Highlight ability to encapsulate this concept precisely using correctly drawn figure.
Suppose the the demand for a product is given by Qd = 40 − 3P , andsupply by Qs = 5 + 2P Suppose that government places a tax on consumers of 10 per unit onproducers.(a) What will be the price and quantity with the tax?(b) How much will be the consumer be paying, including the tax, for each unit that the consumer purchases?(c) How much will the government be collecting in tax revenues?(d) What is the consumer surplus now that a tax has been placed on theproduct?(e) What is the producer surplus?(f) What is the deadweight loss?