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Explain why excise taxes are more effective at raising tax revenues when applied to products with price inelastic demand versus ones with price elastic demand. Under what conditions would it be possible for tax revenues to decline with higher excise taxes?
You are purchasing a new car for a price of $38,000. The dealer is offering two financing programs. Program 1 will allow you to take possession of your new car and defer your first payment for 6 months. Interest accrues monthly on your purchase durin..
Explain how each barrier can foster either monopoly or oligopoly. What barriers, if any, do you feel give rise to monopoly that will allow the government to become involved to protect consumers?
Assume that an individual’s preferences is represented by the following utility function: U(X,Y) = (X^α)(Y)
Which of the following statements about indifference curves is true.. The higher an indifference curve is for a? consumer, the greater that? consumer's marginal level of satisfaction. The higher an indifference curve is for a? consumer, the greater t..
q1. a luxury good is a good for which the income elasticity exceeds one. the demand for a luxury good is given by qd x
GPI is a highly objective alternative to GDP. The main flaw with GDP is that it only includes final goods and services not primary and intermediate good production. Net Domestic Product is GDP after taxes. Over time, the U.S. economy seems to grow ab..
After bad experiences with a flexible exchange rate, the small open economy of Rivendell decides to fix it exchange rate. Suppose the economy of Rivendell has reached the long run equilibrium. Is trade policy more effective under a flexible exchange ..
Suppose that there are two commodities and a consumer prefers more to less of each good. If the consumer has transitive preferences, can her indifference curves cross?
A set of cash flows begins at $200,000 at the end of year 1. It deceases by 10% at the end of year 2 and so on, until n = 10 years. If the MARR = 8%, what is the PW of the flow? Lucky Linda, a very good Avon salesperson, is averaging $100,000 per yea..
assume an urban clusters income i is given by the function i4n-0.05n2 where n denotes the clusters population in
How does the Nash equilibrium of a prisoner's dilemma game change if the prisoners can retaliate at the end of their prison terms if the other snitches? You can make up numbers to illustrate the point, but make sure to depict the equilibrium & game m..
How does the relative tax advantage change if the company decides to pay out all equity income as cash dividends that are taxed at 15%?
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