econ 489 problems2_fall11

econ 489 problems2_fall11 - ECON 489/689 "Review" Questions...

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ECON 489/689 “Review” Questions for Second Midterm Thought Questions (1) You are concerned that gasoline stations may be able to exercise market power. Explain how you could detect the exercise of market power. What evidence is available on the presence of market power? What policies should or should not be pursued? (2) Should retail prices respond immediately to events that impact production (e.g. a hurricane in the Gulf or risk of conflict in Middle East)? (3) Why do retail prices go up (in response to rising wholesale prices) faster than they go down (in response to falling wholesale prices)? (4) What are the tradeoffs in mandating different forms of reformulated gasoline in different regions? (5) Would a “gas tax” holiday substantially reduce prices at the pump? (6) How should policy analysts evaluate the effectiveness of the “Cash for Clunkers” program? (7) How should externalities affect regulation of the transportation sector? True/False/Uncertain
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This note was uploaded on 02/13/2012 for the course ECON 489 taught by Professor Nelson during the Fall '08 term at Texas A&M.

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econ 489 problems2_fall11 - ECON 489/689 "Review" Questions...

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