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Many states provide firms with an investment tax credit that effectively reduces the price of capital. In theory these credits are designed to stimulate new investment and thus create jobs. Critics have argued that if there are strong factor substitution effects, these subsides can reduce employment in the state. Explain their argument.
Income at a major cellular telephone manufacturer when it decreased the average selling price of its phones.
Elucidate the historical relationship between unemployment and inflation.
Find out more about the airline industry. What is the price elasticity of supply for the airline industry.
Find out average fixed costs when the firm produces 50 widgets per day. Find out average total and variable costs for producing 49 widgets.
If average variable prices are assumed to remain constant over a 10 percent increase in output, elucidate the effects of the proposed price cut on total profits.
Illustrate what does the fundamental assumption of marginal utility theory suggest about the connection between money and happiness.
Consider the instrumental variable regression model Y i β 0 + β 1 X 1 + β 2 X 1 +u i , where Z i is an instrument
Discuss the Coase Theorem. Illustrate what this theory imply about the role of goverment in dealing with market externalities.
Explain how each of the following will affect the relative values of the dollar and the euro:
Explain the antitrust laws in the US stricter also more comprehensive compared to those of other industrialized country.
As you start your research, you realize your company would make a significant profit from doing business in China.
Explain how does the reserve ratio set by the Federal Reserve affect the ability of banks to make loans. Name the tools of the federal Reserve Bank. Which is most important?
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