This pack of ECO 365 Week 4 Discussion Questions shows the solutions to the following problems: DQ 1: What is an externality? Provide examples. How does an externality affect the market outcome? Is it possible for a government’s solution to a market failure to actually worsen the failure? Explain your answer. DQ 2: What are the differences among horizontal‚ vertical‚ and conglomerate mergers? What does the U.S. government hope to achieve through the use of its antitrust
Premium Marketing Management Strategic management
pertaining to production‚ Exchange and consumption of goods and services. 3. What are basic concept of economic? * Resource allocation * Opportunity cost * Diminishing marginal returns * Marginal analysis * Business objectives Externalities 4. What is mean by themes of Economics? * Scarcity * Efficiency 5. What are the three fundamental problems in the economy? * What to produce * How to produce * For whom to produce 6. What are main features of scarcity?
Free Economics
Discuss the Pros and Cons of Cross-sectional and Longitudinal approaches to the study of development The study of development is that of changes in physical‚ cognitive‚ social and emotional capabilities over time. The study is usually carried out on infants and children as their changes are faster and more dramatic than adults. These time based studies reveal that the data collected shows the abilities of subjects and the ages they appear. The data is collected through interviews‚ observations
Free Sociology
What is the formula for measuring price elasticity of demand? Percentage change in quantity demanded / Percentage change in price When the price elasticity coefficient is less than 1‚ the percentage change in quantity demanded is smaller than the change in price. When the price elasticity coefficient is equal to 1‚ the percentage change in quantity demanded is equal to the change in price. When the price elasticity coefficient is greater than 1‚ the percentage change in quantity demanded
Premium Supply and demand Elasticity Price elasticity of demand
work in a particular industry. In the “cultural externality” model‚ consumers of a product receive utility from other consumer’s consumption of a domestic good. We show that resistance to change due to cultural concerns can reduce the national benefits from trade liberalization. Complete movements to free trade will have a positive national welfare impact in the cultural affinity case whereas it may lower national welfare in the cultural externality case. We also show that a loss of cultural benefits
Premium International trade Economics Culture
Chapter 1 Ten Principles of Economics Multiple Choice 1. THE ENGLISH WORD THAT COMES FROM THE GREEK WORD FOR "ONE WHO MANAGES A HOUSEHOLD" IS |a. |market. | |b. |consumer. | |c. |producer.
Free Economics Economics terminology Opportunity cost
intervention. 5. Explain how negative externalities cause market failure. 6. Explain how positive externalities cause market failure. 7. Both merit goods and public goods cause market failure‚ comment. 8. Evaluate the measures taken by the government to correct market failure caused by negative externalities. 9. Evaluate the measures taken by the government to correct market failure caused by positive externalities. Macro Economics 1. Evaluate GDP as a measure
Premium Supply and demand Economics Inflation
what such an artificial price looks like. b.) Explain what the results of such a move are for the graham cracker market. In other words‚ will there be a SHORTAGE‚ a SURPLUS‚ or neither created? Why? 3. Pollution is considered by most a negative externality. Some economists would like to see the costs of these burdens incorporated into the price of goods that we buy. For instance‚ since coal fire power plants increase emissions that could potentially lead to climate change‚ these economists believe
Premium Supply and demand
this essay is ‘How Effective is the Current Regulation of International Financial Aid?’ In order to answer this question‚ and subsequently write this paper I will address three key points. I will discuss why the market is regulated (resulting externalities). I will then cover how it is regulated and what instruments are used. I then outline the costs and benefits of the regulation in order to review the consequences for both society and the economy. This essay will also look for incentives (or lack
Premium United States World War II Globalization
INTRODUCTION TO MICRO ECONOMICS ”MARKETS FAILURE” Preface The existence of the market have a very important function. For consumers‚ the market will make it easier to obtain goods and services daily needs. As for the manufacturers‚ the market becomes a place to facilitate the distribution process of goods production. In general‚ the market has three main functions‚ namely as a means of distribution‚ price formation‚ and as a promotion. However‚ with the passage
Premium Supply and demand Economics Market failure