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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 subsidies could reduce employment in the state. Explain their argument. How does this affect the labor market?
What is the difference between explicit and implicit costs? Which of the costs is most closely associated with opportunity costs and why?
Can you articulate how macroeconomics and microeconomics come into play in the context of firm decision-making in a global business. Please provide an example.
What objectives do unions serve? Are there other, more economically efficient, methods to achieve these objectives? What might those methods be?
Explain what happens to price and quantity of milk when the following events take place: For each and every event, specify how it effects either demand, quantity demanded, supply, or quantity demanded. It is also important to demonstrate how the ch..
what determinants affect supply and what affect demand. Once you have drawn in your change, write a short explanation for each question discussing what would be the new equilibrium price and quantity levels because of this change.
The following represents the potential outcomes of your first salary negotiation after graduation:Assuming this is a sequential move game with the employer moving first, indicate most likely outcome. Does the ability to move first give the employe..
Identify the part of the business cycle that is characterized by: The economy is at full employment. The growth rate of aggregate demand exceeds the growth rate of aggregate supply. Recession. Recovery and non-inflationary growth.
What is the explanation that has stood the test of time and analysis as the major cause of the Great Depression? a. The collapse of the U.S. banking system and contraction of the money supply was the major cause of the Great Depression. b. The stock..
Consider an economy that abides by the classical mode. The production function is unspecified, but we know that the Theory of Distribution (ToD)[W/P=MPN] holds. Suppose there is adrop in the level of capital.
The United States cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement, cigarette firms will make fixed yearly payments to government based on their historic mark..
The second modelassumes that owners of these assets wish to earn the highestpossible returns, and it indicates that the market prices of theseassets provide an indication of the percentage of votes that eachcandidate will actually receive on the d..
Compute the quantity supplied by each firm at prices of $1, $1.50, and $2. What is the minimum price necessary for each individual firm to supply output?
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