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The government decides to tax cookbooks because they feel that they encourage overeating and can lead to health issues, such as obesity and heart disease. Answer the following:
· What type of tax is this? Explain.
· What happens to the supply of cookbooks?
· What happens to the equilibrium price?
· Who pays the tax at the end?
· Is this a good way to finance programs to improve health?
· What other types of tax can the government use to increase revenues?
How much labour should be allocated to plant Alpha and to plant Beta? And, at the best allocation, what is the output produced?
Phil has two periods of work remaining prior to retirement. Assume that Phil maximizes the present value of his expected lifetime earnings and his discount rate is 10 percent. He is currently employed in a firm that pays him the value of his ma..
Boris budgets $40 week for his morning coffee with milk. He likes it only if it is prepared with 3 parts coffee, 2 part milk U= min{3/2M,C}. Coffee costs $2/oz, milk $1/ oz. (For the questions below, show your work briefly)
1. for each of the determinants of demand in equation 2.1 identify an example illustrating the effect on the demand for
The Value of the Marginal Product of Labor Equation is an important equation. Setting aside political considerations, there has been quite a bit of discussion regarding the pay level for fast food restaurants. In two paragraphs, please discuss the ch..
A dam is proposed on a stretch of wild river, a river that is currently used for recreation. The dam will generate electricity. The dam will have a useful life of 50 years, after which the reservoir will be full of sediment and the dam will need to b..
The government provides national dental insurance benefits for all U.S. citizens that cover 100% of the cost of all dental services. There are two effects of this policy. First, there will be an increase in the number of consumers of dental servic..
What does the Marshall-Lerner condition look like if the assumption that changes in the exchange rate are relatively small does not hold. Show the modified equation and explain how it is different - and how it makes a difference - compared to the sta..
the wilson companys marketing manager has determined that the price elasticity of demand for its product equals -2.2.
Institutions that function to connect one individual's savings another's investment decisions is in summation called the. Bob buys 500 shares of stock issued by Creature Comforts Brewing. Creature Comforts brewing then use those funds to buy new mach..
There are proposals to change the U.S. federal tax system from primarily an income base to a consumption base. One popular proposal comes from Cornell economist Robert Frank. You may explore his proposal in the video titled, "Robert Frank: Consumptio..
Suppose the government has an experimental treatment that cures ebola in some patients and makes other patients who have contracted ebola more likely to die. Suppose that at time period 0, half of patients who contract ebola die from ebola in the abs..
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