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Questions
Explain the idea behind cost-benefit analysis and why it is important to understand causal relationships in order to do cost-benefit analysis.
Provide an example where two variables are correlated because of an omitted variable, not because one causes the other.
Explain the idea of reverse causality and provide an example.
Show graphically and explain what happens in the Cars market, include effects on Price and Quantity. What would happen to the equilibrium price and quantity of cars if the price of steel increased?
Use internet or printed publications to identify example of Increase in Demand.
Which of the following is an assumption of the monopoly model?
Why are corporations largely interested in the operation of the primary markets while investors are more interested in the operation of secondary markets?
If firms produce identical products and have the same constant marginal cost, m. explain why the Nash-Bertrand equilibrium price and market quantity are the same regardless of whether there are two or more firms.
The expiration of the FICA payroll tax cut of January 1, 2013, raised taxes by $110 billion per year.Assume a marginal propensity to save (MPS) of 0.20.
Based on the information above, we can expect that over the next twenty years, the average annual percentage change in the peso per dollar exchange rate will be ______.
Equilibrium quantity must increase when demand
The simple case of a fixed per-unit tax is indicative of more complicated ones. Consider a proportional sales tax and a progressive sales tax.
A new machine will cost $100,000. Net cash flow before depreciation and taxes are $250,000 per year for 5 years. The machine would be depreciated (straight-line) over 5 years with no salvage value. What is annual net cash flow after depreciation and ..
Assuming MACRS depreciation and an income tax rate of 50%, determine the investor's after-tax rate of return on this investment.
What is meant by investment in human capital? Use this concept to explain wage differentials and the long run rise of real wage rates in the US. explain the difference between a bilateral monopoly and a monopsony. What trade theories do not help expl..
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