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1500 questions
5
votes
3 answers
What is the Economic Rationale for Discounted Early-Bird Parking?
Most urban parking structures/lots in the US seem offer so-called "early bird" discounts for parking, where a substantially discounted flat rate applies to customers entering before a certain cutoff time (typically 9 or 10 AM) and exiting before…
Frank Schmitt
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5
votes
1 answer
Allocative efficiency -- correlation between MB and p in populace with wealth inequality
I was reading a paragraph in an economics textbook that was talking about
resource allocation, and felt that it missed an important point, leading to
a conclusion that I disagreed with.
I was hoping that someone could either explain why I'm wrong,…
Apple
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5
votes
1 answer
Simple model to predict oil prices
Back when Hugo Chavez was still alive (former leader of Venezuela), he said they made "simulations" to predict how much oil prices will increase if they retire the supply of oil they were giving to the world, and that in that time that would cause…
Pablo
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5
votes
2 answers
What would happen if the US defaults on its debt?
As has been widely discussed already, the situation in Greece is considered more serious than in the US, as they have dollar-denominated debt and can only print Greek currency. The US, has the benefit of World Reserve Currency status. All of that…
Arash Howaida
- 971
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5
votes
4 answers
Why do we use tax brackets?
Majority of countries (if not all) use tax brackets to define how much tax should the earning workforce pay. So we could have something like this.
Pay | Tax
0 - 10,000 | 10%
10,001 - 20,000 | 20%
20,001 - 30,000 | 30%
etc.
The breakpoints are what…
lmenus
- 153
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5
votes
1 answer
Higher order beliefs and coherency in game theory
I am reading about the higher order beliefs. Before getting into the formal definitions, I will define some common terminology which I will need for the formal definitions.
If $X$ and $Y$ are two spaces, denote the set of probabilities over $X$ as…
user64066
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5
votes
0 answers
Why do co-ops dominate in certain markets rather than more-conventional enterprises?
Why do co-ops dominate in certain markets rather than more-conventional enterprises?
For example, the US dairy processing market seems to be dominated co-ops like Land'O Lakes and Dairy Farmers of America, while meat processing (a…
user809695
- 151
- 1
5
votes
6 answers
What is the difference between a free market and a perfectly competitive market?
I am trying to find the distinction between a free market and a perfectly competitive market, and I can't find the right definition on what makes them different. Can someone give me a clearly expressed definition on what makes one different from the…
The Artist
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5
votes
2 answers
What is the logic behind this sentence in Keynes's General Theory?
It seems hard for me to understand the underlying logic of this sentence in Chapter 2 of this book:
They do not seem to have realised that, unless the supply of labour is a function of real wages alone,
their supply curve for labor will shift…
twoyoung
- 51
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5
votes
1 answer
Gini index vs Herfindahl index: one increases while the other decreases
I am comparing two vectors of values which indicate portfolio weights in monetary units at two different dates.
I wanted to quantify if the concentration in the portfolios changed. So I moved on with calculating the Gini index and the Herfindahl…
user436994
- 153
- 3
5
votes
1 answer
why is real wage divided by marginal product of labor often called real marginal cost?
As said in the title, why is real wage divided by marginal product of labor often called real marginal cost?
In mathematical formula, $mc_t = (W_t/P_t)/MPN_t$ where $MPN_t$ refers to marginal product of labor, $\partial Y_t/\partial N_t$ and $N_t$…
Kama
- 51
- 2
5
votes
2 answers
Is there some kind of consensus on the determinant factors of education achievement?
There is quite a bit of literature on the economics of education. One of the most debated aspects of it arises when estimating the achievement of the student (usually in the form of standardized test scores). Which are the most relevant inputs?…
han-tyumi
- 830
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5
votes
4 answers
Are energy and capital complementary factors of production?
Why energy and capital are complementary factors of production?
In the literature of environmental taxation, it's often argued that energy and capital are complementary factors of production. So for instance if price of energy goes up, so will the…
rahman
- 51
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5
votes
1 answer
Is there any statistics available on forecasting failures?
Like what percentage of financial/economical forecast fail?
Or how often do politicians create bad policies based on wrong forecasts?
Andrew Potapov
- 51
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5
votes
1 answer
What are the defining features of Capitalism?
What are the necessary and sufficient conditions for an economic system (or mode of production) to be classified as "Capitalism"?
Is it markets? Is it for-profit corporations? Is it limited liability companies? Is it workers selling their labour to…
luchonacho
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