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Questions: The Board of Directors would like you to undertake the following tasks:
Using a diagram showing consumer and producer surplus, show generally how taxes impact consumer and producer welfare. Remember to highlight the deadweight loss (DWL) to your audience. Then extend this to the macroeconomy by showing how taxes generally impact aggregate demand and aggregate supply (AD-AS). Using an AD-AS model, can you answer whether a tax that improves people's health could have any potential long-term benefits for the economy. Finally, briefly discuss how you could use an empirical econometric model to assess the health and economic growth consequences of a 'fat tax'.
1. suppose the demand for a product is given by p 50 - q. also the supply is given by p 10 3q. if a 12 per unit
(Fiscal Multipliers) Explain the difference between the government purchases multiplier and the net tax multiplier. If the MPC falls, what happens to the tax multiplier?
The price of a cone is expressed in cents, and the quantities are expressed in cones per day. a. Create demand & supply tables corresponding to these equations. b. Graph supply and demand and determine equilibrium price and quantity
Oil refiners are incurring losses and plan to cut production.Explain how China's price controls have changed consumer surplus, producer surplus, total surplus, and the deadweight loss in the markets for coal and gasoline. Draw a graph to illustrat..
consider the indirect utility functionvp1 p2 m m p1 p2a. derive the marshallian demand functions.b. what is the
Should the government allow insurance companies to base life insurance rates on sex? What are the risks for women and for men who were paying very different rates? Who gains and who loses?
For the isocost line, clearly identify the vertical and horizontal intercepts. For the isoquant, clearly identify 5 combinations of Labor and Capital that will produce Q = 20 (including the bundle that minimizes the firm's cost of production). M..
Using the Internet, library, or other resources, research and briefly explain 2-3 methods currently being used to encourage economic growth for the typical firm in Hong Kong and for the typical firm in Singapore.
What is the long-run equilibrium price for cobalt? How much cobalt does each producer make at this equilibrium price? How many active cobalt producers will be in the market
Explain the importance of the error term in econometrics. Using a t-test and a 5% level of statistical significance, are the individual estimated coefficients
Under what conditions does the income effect reinforce the substitution effect? Under what conditions does it have an offsetting effect? If the income effect more than offsets the substitution effect for a good, what do we call that good?
Under a fixed exchange rate system, when will speculation by foreign investors be stabilizing? When will it be destabilizing?
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