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When someone owns an asset (such as a stock) that rises in value, he has an "accrued" capital gain. If he sells the asset, he "realizes" the gains that have previously accrued. Under the U.S. income tax, realized capital gains are taxed, but accrued gains are not.a) Explain how individuals' behavior is affected by this rule.b) Some economists believe that cuts in capital gains tax rates, especially temporary ones, can raise tax revenue. How might this be so?c) Do you think it is a good rule to tax realized but not accrued capital gains? why or why not?
Perfect Competition is a model of which examples are few and far between. Yet economists love to discuss this model. Explain why.
This is a challenging question and involves algebraically solving system of two equations given by AD abd AS curves. The equations for the curves are given through the following:
Calculate the price elasticity of demand for Einstein's Bagels and explain what it means. Derive an expression for the (inverse) demand curve for Einsteins's Bagels.
Describe how a firm's microenvironment can determine how profitable it will be? Provide examples of organizations as well as aspects of their microenvironment which have hindered or benefitted growth.
If the marginal propensity to consume equals 0.75, a $6,000,000 increase in government purchases will result in what increase to total output, assuming no crowding-out effect exists? A. $4,500,000 B. $6,000,000 C. $8,000,000 D. $24,000,000 E. $1,50..
Compute the expected market price. Show calculations please. How many units should you produce to maximize expected profits? What is your expected profit or loss? Again, show work.
Construct a table showing the marginal cost of production. What is the minimum price necessary for the company to supply ten thousand copies? How many copies would the company supply at industry prices of $5,500 and $7,000 per ten thousand?
Consider an industry made up of 8 firms.the market shares of 6 firms are 10% each. The market shares of the remaining two firms are 20% each. would a merger between firms 1 and 2 be likely to be challenged by the government
The demand and supply curves for T-shirts in LA, Ca, are given through the following equations, Determine the equilibrium price and quantity after the shift of the demand curve.
Given that Y=900 and want consumption and investment are given through, Fill the entries as you require to answer the questions.
Consider the firms short run decision to hire workers. Suppose that a firm produces goods for sale in the perfectly competitive market. labor markets are competitive as well.
Determine the specific details about this fictitious company in order to conduct an environmental scan of this company.
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