30 Apr Question: 1. What is deadweight loss and how does it impact consumer consumption, and government public pla…
1. What is deadweight loss and how does it impact consumer consumption, and government public planning? 2. Explain economic efficiency, wealth transfers, and cost-benefit analysis in relation to government regulation. 3. Describe the three types of market failures due to monopoly, externalities, and imperfect information. 4.In each of the following situations, explain whether an externality is present. In your answer, address how government intervention is involved. -Mine safety has improved in recent years. Nonetheless, mining accidents result in 50 to 100 deaths per year and thousands of lost work days due to injury. -Large brokerage and financial service companies conduct intensive introductory training programs for new hires, many of whom, once trained, leave the company within the first year to work for competitors. -The volume of email spam has grown exponentially in the last five years. -A husband and wife who have put off buying a house suddenly find themselves priced out of the market by rocketing real-estate prices. 5. Suppose Coca-Cola and Pepsi were to announce plans to merge into a single global soft-drink company. What would be the possible effects on soft-drink consumers? What kind of regulatory scrutiny should the U.S. government cast on the proposed merger?
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