Refer to Figure 5-10. One way to obtain the economically efficient amount of chicken pox vaccinations is for governments to subsidize these vaccinations
What is the size of the per-vaccination Pigovian subsidy that the government must provide to internalize the external benefits?
A) (PE - PF) B) PE C) (PF - PG) D) (PE - PG)
D
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An increase in the price of the output produced by labor will:
A. decrease the demand for labor. B. increase the supply of labor. C. increase the demand for labor. D. decrease the supply of labor.
Refer to Figure 14-7. Uniguest, Inc is a company that provides PCs with internet access and touch-sensitive screens to hotels
Suppose the Hard Rock Hotel and Casino in Las Vegas informs Uniguest that it is considering installing these systems in its hotel rooms. The Hard Rock expects to be able to charge higher prices for these rooms if it installs Uniguest's systems in its rooms. The two companies begin bargaining over what price the Hard Rock will pay Uniguest for its systems, and the decision tree shown above illustrates this bargaining game. Note that the profit figures listed in the decision tree are additional profits for the Hard Rock and total profits for Uniguest. a. Suppose the Hard Rock offers Uniguest $1,200 per system. Will Uniguest accept or reject this offer? Why? b. Suppose the Hard Rock offers Uniguest $800 per system. Will Uniguest accept or reject this offer? Why? c. Suppose Uniguest attempts to obtain a favorable outcome from the bargaining by telling the Hard Rock it will reject an $800-per-system offer. If the Hard Rock does not believe the threat is credible, what will it do? Why? What will Uniguest do? Why? d. Is there a subgame-perfect equilibrium in this situation? Explain.
Libertarians believe that
a. the government should choose just policies as evaluated by an impartial observer behind a "veil of ignorance.". b. the government should aim to maximize the well-being of the worst-off person in society. c. everyone in society should have equal utility. d. the government should not redistribute income.
In a Floating Exchange Rate system:
(a) The government intervenes to influence the exchange rate. (b) The central bank intervenes to fix the exchange rate. (c) The exchange rate adjusts to equate the supply and demand of the currency. (d) None of the above