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Using the same analytical techniques as those developed in this chapter, develop a diagrammatic analysis of a matching grant with a maximum amount available. (Hint: when the maximum is reached, the rest of the budget line becomes vertical or horizontal.) How are the effects different from those of a simple matching grant? Does it depend on the size of the maximum? The shape/position of the indifference map? Are there circumstances in which the ceiling on available funds might have no effect on the mix of services provided?
Suppose market demand is P = 130 - Q. a) If two firms compete in this market with marginal cost c = 10, find the Cournot equilibrium output and profit per firm. b) Find the monopoly output and profit if there is only one firm with marginal cost c = 1..
What can be said for the Epanechnikov kernel with adaptive nearest-neighbor bandwidth λ(x0)?
There is a lot in the news about capitalism and socialism, and it appears that the words are thrown around without a lot of understanding about what they actually mean. Your assignment is to research both "isms" and find the following.
If a tax equal to 10 percent of the value of the wine is imposed, who pays more in taxes? Who pays the greater amount as a percentage of income?
A member of a successful music band is considering leaving the band to pursue a solo career. If she stays with the band she estimates that there is a 60% chance that the band will continue to be successful and she would earn $1.7 million over the ..
Suppose that an economy has the Phillips curve p = p-1 - 0.5(u - u^n), and that the natural rate of unemployment is given by an average of the past two years' unemployment: u^n = 0.5(u-1 + u-2).
Suppose 1 year Treasury-bills were currently yielding 5.5%. Also suppose that a bank estimated that a particular loan applicant had a 30% chance of defaulting on a one year loan and that in the event of default the bank would recover only 25% of i..
Propose a scenario to reduce your clients tax liability by changing U.S. Source income into foreign source income in a way that will not generate any additional foreign tax.
Suppose Sue and Joe agreed to collude and jointly maximize their profits. If Sue and Joe were to be able to repeatedly play the game shown earlier and they agreed on a penalty for defecting from their agreement, what is the likely outcome of the
For the declining-balance method, Wang Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 24,000. Actual hours of use in the first 3 years were: 2009, 400; 2010, 4,500; and 2011, 5,000.
A political commentator argues: "Congress and the president are more likely to enact an expansionary fiscal policy than a contractionary fiscal policy because expansionary policies are popular and contractionary policies are unpopular." Briefly ex..
A family bought a house in October 1998 for $200,000. The house was financed by a mortgage where they paid 20% of the value and the bank financed the balance of the loan at 9% annual interest compounded monthly [.0075% monthly] over a 15-year peri..
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