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Suppose that a carbon tax is imposed and electric cars become common.
What will the combined impact be on the equilibrium price and quantity of gasoline?
Explain your reasoning and show graphically. Remember quantity falls, but change in price is indeterminate, since it depends on which curve shifts more.
In recent decades, trade has been growing faster than income for many countries. What combination of trade effects is sufficient for this to come about? Is this behavior consistent with the Rybczynski theorem? Under what circumstances?
A basic assumption for comparing the straight-line production possibilities curves for two nations is that the production possibilities curves reflect.
Based on discussions surrounding the controversy over the value of the Chinese yuan in foreign currency markets, is China still using central bank foreign exchange policy to maintain the value of the Yuan? What is the current policy of the United Sta..
Suppose that some foreign countries begin to subsidize investment by instituting an investment tax credit. What happens to the investment in our small open economy? What happens to our trade balance? What happens to our real exchange rate?
Show that a specific tax of $3.70/unit generates the same revenue as a 20% ad valorem tax
If the EU and the United States continue to trade what do you think will characterize goods which the EU exports to the United States and the goods that the United States exports to the EU.
Gasoline prices typically rise during the summer, a time of heavy tourist traffic. A “street talk” feature on a radio station sought tourist reaction to higher gasoline prices. Here was one response: “I don’t like ’em [the higher prices] much. I thin..
A decrease in productivity in a country will cause its currency to ________ because it produces goods at a ________ price, everything else held constant.
In 2008 the Federal Reserve took pretty extraordinary measures in an attempt to stabilize the economy. What will the inflation rate be? How low can the Federal Reserve lower the Real interest rate*? How much output is recovered? Is it enough to push ..
Bill gets utility from consuming food (F) and clothing (C) represented by the following utility function: U(F,C) = FC + F. The price of food is $1 per unit and the price of clothing is $2 per unit. Bill’s income is $22. Find the utility maximizing ch..
An essay on "to what extent do you think normative economic normative analysis as opposed to positive economic analysis, determines our nations public policy decision made by government? why? is that "good" or bad"? why? 150 words excluding "a","an" ..
Both inflation rate and unemployment rate are closely watched aspects of macroeconomic performances of the economy, and they are also among the key variables guiding macroeconomic policy targets. If you were macroeconomic policymaker, how do you bala..
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