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Draw the average and marginal cost curves for a natural monopoly. Draw the demand and marginal revenue curves.
What does the utility possibilities schedule look like now? Which of feasible allocations maximizes social welfare with a utilitarian social welfare function?
If marginal utility did not decrease at all for both Friday and Crusoe, what would the utility possibilities schedule look like?
For each of the following policy changes, explain why the change is or is not likely to be a Perm improvement.
Some people think that even Rawlsian criteria are not sufficiently egalitarian. What might an extreme egalitarian individual advocate?
Why Can you think of examples of public goods, the consumption of which would increase more than proportionately to the increase in income?
What happens to a publicly provided good in which congestion can occur, but in which no direct rationing system is employed?
How changes in income or other changes in the economic environment may lead to changes in the balance. Illustrate by a discussion of the role of public parks.
What are some of the problems of ensuring that individuals and countries take actions to reduce emissions of greenhouse gases?
What implications might the fact that efficient government is a public good have for the efficiency with which governments function?
Discuss the issue of vaccination from the perspective of public goods/externalities. Why might individuals not voluntarily consent to be vaccinated?
what will happen in a two-party system to equilibrium level of expenditure on public goods? If equilibrium was originally Pareto efficient, will it still be?
Why might preferences for local parks and for urban public transportation systems (buses and subways) also not be single peaked?
In discussing one of these topics, the goal is to relate how a particular political perspective derives from process philosophy (such as socialism).
What should be the effect of an increase in the costs of producing public good caused by government inefficiency?
Show diagrammatically how you derive the demand curve for the public good, as a function of the tax price charged the individual.
Explain why the majority voting equilibrium will be Pareto efficient Now assume that income is not symmetrically distributed.
Draw the marginal rate of substitution as a function of income (for a fixed level of expenditure on public goods). Assume Income is symmeuitally distributed.
This voting scheme thus violates the principle that the chosen outcome should be independent of irrelevant outcomes.
How might an economist focusing on median voter behavior and an economist focusing on average incomes differ in their predictions concerning changes.
In each of that CaSCS, outline the major arguments in favor of and against privatization. Do you feel differently about the three cases? Why?
Under the Reagan administration, the Interior Department greatly increased the rate. Discuss the distributional and efficiency consignees of this wait?
The Postal Service claims that one reason why it cannot provide services as cheaply. Discuss the advantages and problems of such an alternative subsidy scheme.
What do economists mean by diminishing returns to an input? What causes diminishing returns? Have you ever observed this principle at work in a job you've had?
How would you define income inequality? How is income inequality measured? What has happened to income inequality in the United States?