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We showed in class that if there is a person with the highest ability (and, hence, earnings), then the marginal tax rate for that person should be set to zero because of the incentive effect. What other consideration do we need to take into account if ability can be arbitrarily high or we are not going to adjust the tax rate just for the highest ability person?
Upon what specific assumptions is this production possibilities curve based?
What is the money one makes off of the product. An entrepreneur hopes that the cost to make the product is little and the price he sells it for is high.
Why is the short run Aggregate supply curve have a positive slope and the long run supply curve a vertical one?
Draw a diagram describing autarky and a pattern of comparative advantage for your example.
1. Monetary policy could influence the long-run behavior of price levels, inflation rates, costs, and other real or nominal variables 2. Trade deficits or surpluses can influence the growth of productivity and GDP.
At a furniture company, customers who purchase on credit, pay an annual effective interest rate of 36% based on monthly compounding. What is the nominal, annual interest rate they pay?
Clara's utility function is U(X, Y) = (X + 2)(Y + 1). If Clara's marginal rate of substitution is -6 and she is consuming 8 units of good X, how many units of good Y is she consuming?
What are some projects in place that will address the problem (suggest one if none exist yet)? Why did you choose your topic? How has learning about the topic affected your ideas going into this assignment?
Examine this case of significant government intervention as it relates to your current industry of employment or an industry in which you are interested in working. Examples of intervention programs include.
You are the chief economist in Raccoon City, a small city in the Midwestern United States. You want to calculate how much money your city has in circulation.
The Impact of Government Debt on Interest Rates - What is the cross country evidence in favor of higher government debt resulting in higher interest rates
Suppose that a caretaker government reduces government purchases and increases taxes.
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