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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?
Explain what is mean by exchange rate overshooting and undershooting. Explain the GG, MM, and PPP lines and equilibrium in the Dornbusch model.
Plot residual by time and explain residual plot where you find any problem. Do we violate any 7 assumptions of OLS. If so, what are consequences.
A firm’s total cost of producing 50 units of output is $1,000. At this output level, average fixed costs are equal to $10. It follows that the firm’s average variable costs are equal to? To maximize profits, a price-taking (i.e., competitive) firm sh..
A perfectly competitive industry is initially in a short-run equilibrium in which all firms are earning zero economic profits
Suppose In a Found Ltd. just issued a dividend of $1.52 per share on its common stock. The company paid dividends of $1.20, $1.26, $1.33, and $1.44 per share in the last four years. If the stock currently sells for $55, what is your best estimate of ..
For a monopoly, the level of output at which marginal revenue equals zero is also the level of output at which
In a town of 120,000 potential "football fans," the football team draws the following attendees per game, at the various prices shown: If the team can charge ANY prices it wants (including different prices to men and women), what price(s) should it c..
Suppose the cost function for your firm is: C = 10 +2Q + 5Q2. If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $35, What level of output should the firm produce to maximize profits o..
will have to rise the money supply to keep the price level from falling.can keep the price level stable without altering the money supply or interest rate.
The following information describes the value Lori Landlord places on having her five apartment houses repainted. She values the repainting of each apartment house at a different amount depending on how badly it needs repainting. Value of new paint o..
The price of gasoline rising increasing the quantity demanded of the Toyota hybrid Prius, thus gasoline and the Toyota Prius are: (10 points) (Hint: What is the key fuel of the Toyota Prius) a.) Substitutes b.) Complements c.) Not related d.) Superio..
Determine the impact on the economy if the central bank in U.S. used inflation targeting.
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