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1. Read the March 1, 2012 Chicago Tribune article Chicago-are gas tax hike proposed to fund mass transit investment. The article has been posted, Please use the link above.a. If you rely on mass transit what does this proposed tax hike mean to you personally?b. If you drive to school/work what does this proposed tax hike mean to you personally?c. How does this proposed tax hike affect the social cost of gasoline consumption in the short-run? In the long-run?d. Do you support this proposed tax hike? If yes defend your position? If not provide an alternative policy? (Answer as an economists, not as a mass transit user or driver).
Illustrate the difference among dollarization, a currency board, and a fixed exchange rate regime. Do you know of any countries that have recently adopted dollarization.
What is opportunity cost? Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic? Explain law of demand with the help of a demand schedule and demand curve.
If consumer incomes rise to $30,000, illustrate what will be the new equilibrium price and the new equilibrium quantity.
Name various areas of business in the US (or world) where the prevailing market structures have changed dramatically in the past twenty years and discuss the direction of the change.
If increased government spending and tax cuts were equally effective in stimulating aggregate demand, which fiscal tool would you select? Why?
Illustrate what extent should managers base their plans on the assumption that customers and suppliers are self-interested.
Suppose that Al, Beth, Carol, David, and Ed receive incomes of $500, $250, $125, $75, and $50, respectively. Create and interpret a Lorenz particular level of total income.
Explain how does Global Intellectual Property Laws affect Telecommunication industry economic growth.
If the substitution effect dominates the income effect, then as increase in the wage rate will increase the quantity of labor supplied by an individual. The more complicated a production process is
For the product shown, assume that the minimum point of each firm's average variable cost curve is at $2. Construct a demand and supply diagram for the product and indicate the equilibrium price and quantity.
Derive the golden rule savings rate for this economy. (Hint it will be 35 percent) What would be the new level of steady state y, c, s, k if the economy moved to the golden rule savings rate?
Give three reasons why firms produce in Germany rather than in a lower-wage country.
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