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Lars consumes only potatoes and herring. When the price of potatoes was 9 crowns per sack and the price of herring was 5 crowns per crock, he spent his entire income to buy 5 sacks of potatoes and 10 crocks of herring per month.Now the government subsidizes potatoes. Market prices haven't changed, but consumers get a subsidy of 5 crowns for every sack of potatoes consumed. To pay for this subsidy, the government introduced an income tax. Lars pays an income tax of 20 crowns per month. If s is the number of sacks of potatoes and c is the number of crocks of herring, what is Lars's new budget equation?
Illustrate what sources of information were researched and utilized. What economic measures are commonly used in discussions of the health of the economy.
Consider the Figure below that represents a perfectly competitive firm
There are two types of consumers of potatoes: 10 are rich and 50 are poor.Interpret the differences between the demand of the rich and the demand of the poor.
Suppose Congress (in an attempt to stimulate the economy in both the short and long run) passes an investment-tax credit, which subsidizes domestic investment. How will this policy affect (comparing the state of the economy prior to the enactment o..
Explain how the factors determining resource demand differ from those determining product demand. Explain the meaning and significance of the fact that the demand for a resource is a derived demand. Why do resource demand curves slope downward
Debra listens only to either Frank Zappa or Weird Al Yankovic. She currently purchases 20 Zappa and 30 Yankovic downloads per week. She would forgo Yankovic downloads for one Zappa download at the rate of 2 to 1
Compare and contrast the effect of an increase in Foreign interest rates on Home's economy under fixed and floating exchange rate regimes. Use the IS-LM-FX model for each case (flexible and fixed exchange rates)2)Why might a country with a fixed ex..
What motivated the producers of all the individual products in the store to make them and offer them for sale? How did the producers decide on the best combinations of resources to use Who made those resources available, and why
What would an economists say that the burden of the FICA tax is shared equally. Who bears more of the tax burden Workers or employers.
Determine when does the idea of opportunity cost indicate? think how the production of one good affects the possible production level of other goods.
Many companies are using computer mediated communication for training and updating their employees. They must choose the most effective and efficient manner of communication. Effective and efficient may be defined as achieving the communication go..
Assume government imposed a minimum wage above what otherwise would be equilibrium wage rate for the segment of labor market.
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