Economics 103 Second Midterm November 17, 2015 90 minutes No calculators, no aids allowed. Dr. J. Friesen ANSWER KEY Multiple Choice. 3 marks each. Indicate your answers on the bubble sheet provided. 1) Which one of the following statements about illegal goods is true? A) Taxes are more effective in changing preferences than prohibition. B) Prohibition is more effective in generating revenue than an equivalent tax. C) Taxes and penalties cannot be set to yield equivalent outcomes.
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Pareto was born of an exiled noble Genoese[->0] family in 1848 in Paris, the centre of the popular revolutions of that year. His father, Raffaele Pareto (1812–1882), was an Italian civil engineer and Ligurian marchese who had left Italy much like Mazzini and other Italian nationalists.[3] His mother, Marie Metenier, was a French woman. Enthusiastic about the 1848 German revolution[->1], his parents named him Fritz Wilfried, which became Vilfredo Federico upon his family's move back to Italy in 1858
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and competitive markets - is a "good thing" in the sense that it is also a point of economic efficiency. In other words competitive outcomes are also efficient ones. The fact that competition leads to efficiency is known as the First Fundamental Theorem of Welfare Economics. The efficient outcome will have been brought about through parsimony in the use of information; the only things that individuals, in making their supply/demand decisions, need to know are the prices of the different commodities
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crashes kill someone every 31 minutes and nonfatal injure someone every two minutes. During 2005, 16,885 people in the U.S. died in alcohol-related motor vehicle crashes, comprising 39% of all traffic-related deaths. What has become known as the Coase Theorem is the proposition that in the absence of transactions cost the level of production of goods or services in an industry in which there are externalities is independent of whether or not the party who perpetrates negative externalities is legally
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Abstract This paper discussed and explained outsourcing, identified effective techniques and methods, and why outsourcing is utilized. Outsourcing can be an effective method for improving an organization’s functionality. While outsourcing advantages can reap benefits of improved productivity and lowered costs, the disadvantages must be taken in consideration to reach success. Analyzing the different aspects of: why is outsourcing necessary, what are the potential advantages and disadvantages, and
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Practice final exam/guide PART A: Multiple choice and short answer questions 1) The branch of economics that examines the functioning of individual industries and the behavior of individual decision-making units is a. behavioural economics. b. microeconomics. c. macroeconomics. d. normative economics. 2) You own a DVD of the film 'A Beautiful Mind'. The opportunity cost of watching the DVD the second time a. is zero as you already own the DVD.
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First Exam ABU 402 01, Spring 2015, Name:____________________, Date______________ Multiple Choice Questions: 1. Economics is the study of a) Production methods. b) How society manages its scare resources. c) How households decide who performs which tasks. d) The interaction of business and government. 2) United Nations Environmental Program is not concerned with one of these a) Global environmental outlook. b) Nitrogen pollution in one freshwater and oceans c) Global population
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$600 Question 3 a) According to Coase theorem it doesn’t matter who builds the fence as long as it is less than the cost of the crop damage. However, to answer the question; the rancher builds the fence, because the cost of the fence ($100) is less than the cost of compensating the farmer for crop damage. Together, the rancher and the farmer are $200 better off ($300 crop damage less $100 fence). The Coase theorem doesn't predict how the gains will be shared - they could
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about the comparability and commensurability of values. 5. Economic Analysis of Law and the Endowment Effect There are competing explanations for the Endowment Effect and some economists actually doubt its existence. It is relevant for the Coase theorem as well as to other legal issues. There is some, but not much, overlap between this topic and the topic of default rules. 6. Economic Analysis of Default Rules (jus dispositivum) Students may focus on contract default rules, or extend the topic
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Theories of International Trade & the Multinational Enterprise Theories of International Trade & the Multinational Enterprise International trade is the exchange of goods and services across borders. Trade provides people with greater selection of goods and services to choose from. The importance of international trade to a nation economic welfare and development suggest that economies need to export goods and services in order to generate revenue to finance imported goods and services
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