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Q. Suppose you are the manager of a home-building company and the government is considering eliminating the deduct-ability of mortgage payments interest. As distinctive consumer's marginal tax rate is 25% and the elasticity of demand for new homes is -1.5. Your boss wants to know the impact of the proposed government policy on your business. What would you tell him? Suppose that marginal tax rates were reduced to 20% as part of the tax bill. How does this change your answer?
The government plans to rise state spending by $2bn in the next fiscal year.
Suppose a politician promises a program that will give Amanda and Britney 70 units of utility for each.
If the company has not paid dividends, discuss why think the company is not paying dividends or whether they should consider adopting a dividend policy.
Suppose now the price of a cell phone minute falls to $.50 per minute. Show how this will change the budget line.
Why did people believe the difficulties Aisian economies were expericing in 1997-1998
At what level of output are total profit maximized. Illustrate what price will be charged.
Why do monopolistic competitors have a tendency to advertise much more than perfectly competitive firms?
What would the' peso- dollar exchange rate be if purchasing-power parity holds? If a monetary expansion caused all prices in Mexico to double, so that soda rose.
the industry that this claim were untrue, what critical questions could you ask about the HHI used for the study
Depict the von Neumann-Morgenstern utility index u in a diagram
Do you believe that profit (or shareholders wealth) maximization still represents the best overall economic objective for today's corporations.
Can this model explain the fact that unilateral divorce law increased the divorce rate temporarily.
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