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In order to host the Winter Olympic Games the city of Vancouver incurred a large debt, which will have to be repaid over time. Reflecting on this fact, one Vancouver resident complained, “The average guy is going to see his taxes increase” [Austen, 2010] Who is going to bear t he burden of these future taxes? [Hint: Take advantage of the theory of tax capitalization.]
Calculate the percentage change in nominal gdp, real gdp and the gdp deflator in 2008 and 2009 from the preceding year. for each year identify the variable that does not change. explain in words why your answer make sense.
David gets $3 per month as an allowance to spend any way he pleases. Since he likes only peanut butter and jelly sandwiches, he spends the entire amount on peanut butter (at $0:05 per ounce) and jelly (at $0:1 per ounce). Bread is provided free of..
A pure monopolist determines that at the current level of output the marginal cost of production is $2, average variable costs are $2.75, and average total costs are $2.95. The marginal revenue is $2.75. What would you recommend that the monopolist..
What is a one invention that had good impact on the international economy and why. What were the impacts of this invention were impact good or bad.
A monopolist faces a demand given by p = 40 – 4y . Its cost function is c ( ) = 2 + 4 y . a) What is the optimal level of output for a monopolist? b) What is a monopolist price? c) What is the total profit (or loss)?
In Mexico, it takes 3 days to produce a bulldozer and 12 days to produce an airplane. In Brazil, it takes 2 days to produce a bulldozer and 10 days to produce an airplane. The opportunity cost of producing an airplane is lower in
q.q1. consider two persons ann and bill and two-goodsx and y exchange economy. the total endowment of the economy is
Write the numerical formula for the LM curve? What is the equilibrium level of r?
q.between two production technologies firm can choose a new product line. if it installs expertise 1 its annually costs
What is the rate of inflation of the U.S. dollar is 5% and the rate of inflation of the Japanese yen is 2%. What is the percent change in the real $/Y exchange rate.
Does the widget production function exhibit constant, increasing or decreasing returns to scale.
Real wealth which capitalists pull out of market must somewhere enter market. What is this hidden mechanism.
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