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Throughout the text we have emphasized how different government actions affect various groups in the population differently.
a Assume the government is considering whether to finance a war by borrowing or by taxes. Describe how different groups are affected by the two alternatives.
b Assume the government is considering whether to reduce the deficit by increasing capital gains taxes or by increasing payroll taxes. Describe how different groups are affected by the alternatives.
Suppose that the production function of an economy follows the formula Y = F(K, bN) where b denotes the number of units of "human capital" per worker and bN the "effectiveunits" of labor. Due to effective educational policy, the stock of human cap..
Do you think this model provides a plausible mechanism for generating large income differences across countries? Substantiate your answer with theoretical or empirical arguments.
The widget Industry in Anytown is a monopoly, controlled by Widget Corp. Its demand curve for the local market is given by P = 800 - 20 W Where W represents the number of widgets sold per period. The total cost function (including opportunity or impl..
What is a recessionary gap? What would be the appropriate fiscal policy to combat or offset one? What is an inflationary gap? What would be the appropriate fiscal policy to combat or offset one?
Analyze your product's position in relation to the competition. Identify the main competitors. Explain how your product
Explain why an inverted (downward-sloping) yield curve may indicate that a recession is coming.
the possibility that employer-provided health insurance reduces job mobility-a phenomenon that has been termed job lock. Job lock prevents workers from transitioning to jobs in which their marginal productivity would be higher
Peyton Packing has a ham cooker that has the cost stream below. If the interest rate is 15% per year, determine the annual worth(in years 1 through 7) of the costs. year 0=$4,000, year 1=$4000, year 2=$3000, year 3=$2000, year 4=$6000, year 5=$800..
Which combination(s) in part (c) lie inside the affordable set, and which lie on the boundary?
What happens to the profits of boat makers in the short run? What happens to the number of boat makers in the long run?
At what salary would it make sense for this firm to hire an incompetent manager?
A firm operating a chain of drug stores consider to open a new store in one of locations. The management of firm figures that at the 1st location the store will show an yearly profit of $20,000 if it is successful and an yearly loss of $2,000 if it i..
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