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For each of the following corporate taxable incomes, calculate
A) corporate income tax, B) effective tax rate, and C) marginal tax rate. 1. $12,000 2. $88,000 3. $1,000,000 4. $19,300,000 5. $400,000
Suppose that the economy improves and the crime rate in West Philadelphia drops, so that the marginal product and average product of a group of 100 police offers is now 55 arrests per hour for any number of police officers. What is the optimal alloca..
Philip's quasilinear utility function is U=4q1^0.5 + q2. His budget for these goods is y=10. Originally the prices are p1=p2=1. However, the price of the first good rises to p1=2. discuss the substitution, income, and total effect on demand for q1.
A local department store puts out products at an initial price, and every week the product goes unsold its price is discounted by 25% of the original price. If it is not sold after 4 weeks, it is sent back to the warehouse. Let W denote your willingn..
If a 10% decrease in the price of gas causes a 30% increase in the demand for standard sized autos, then the cross-price elasticity of demand is: If the price elasticity of demand of for gasoline is 1.8, then a 15% decrease in quantity demanded is ca..
Use the Aggregate Demand/Supply Model to: A) Explain the circumstances under which expansionary fiscal policy will result only in inflation. Explain the economic conditions that cause this to be so, and use appropriate graphs to augment your discussi..
A large life insurance company has decided to switch from using a strong fear appeal to a humorous approach. What are the strengths and weaknesses of such a change in message strategy?
Explain briefly why the sellers and buyers are each willing to do so. What is the total cost of pollution reduction in this situation.
Suppose one economist believes the target rate of unemployment is 4.2 percent while another believes it is 5.3 percent. Using Okun’s rule of thumb, by how much would you expect their estimates of potential GDP to differ in an $11 trillion economy?
Consider an economy in which people wish to hold bank checking deposits worth a total of 5 million goods and currency worth 2 million goods in every period. In addition there is a stock of un intermediated capital worth 10 million goods. Find the tot..
Explain the entities affected by industrial regulation in terms of marketplace structure.
The market for roofing services suffers from asymmetric information because customers don't know the quality of roofers' work. Which of the following DOES NOT help overcome this information problem?
Illustrate what do economists mean when they say that private goods tend to be produced in the right amounts.
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