Wednesday, May 28, 2014

econ review quesiton 27

http://youtu.be/vcZHeUSDZ6M

Discuss the difference between shareholder and stakeholder theory.

Why does McDonald's sell food that is bad for us? Why do we buy it? What should (could) government do about it?

If you impose a Pigouvian tax on fast food, what will happen? consider short and long run, consider social welfare. can you say with certainty?

Let's assume the worst - that McDonald's wants to destroy the environment and make us all fat and sick.What is the best policy mix to deal with that? (I don't happen to think that is true, but let's use that straw-man.)


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