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Suppose the state of California needs to increase tax revenue. The government is considering raising the per-unit tax on consumption good in order to generate more tax revenue. If they choose between a good that is relatively more demand elastic or relatively more demand inelastic, which would be more likely to generate more tax revenue? Assume that supply curve has the same elasticity for both goods.
Your firm produces two products, Q1 and Q2. An economic consulting firm has estimated your cost function to be C (Q1, Q2) = 100 + Q1Q2 + (Q1)^2 + (Q2)^2. Are there economies of scope?
Suppose that a study conducted by the Department of Homeland Security discovered that the average time it took passengers to go through the customs process for international flights arriving at the Atlanta airport was 33 minutes
explain the following statement changes in disposable income lead to movements along the consumption function while
What is the current unemployment rate (hint: the update on the unemployment rate is usually released the first friday of each month) Do you think this unemployment rate is generally considered to be above, below or equal to NAIRU
Two variable inputs, labor (L) and materials (M), are utilized to produce output. Company's current level of output: CL = $10 / unit, MPL = 25 CM = $2 / unit, MPM = 4 (!) Decide whether the firm is operating efficiently, given that its objective is t..
1) We are not looking for a traditional biography of these economists, and we are not concerned about their place of birth, marriage(s), schooling, zodiacal symbols, favorite color or animal, except as that informs their work.
The small island of Tap, inhabited by the Tapese people, produces a single variety of corn. At the present time, each farmer produces his or her own corn, harvests it and carries it to the market for sale. On any market day in Tap, you will find m..
Consider the argument that government spending and borrowing harms long-run economic growth. A. Is this most likely to happen if the private spending crowded out is consumption spending or investment spending.
Currently, at a price of $0.5 each, 200 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $0.5 to $1 is unit-elastic (E s = 1). In the long run, a price incre..
the federal reserve controls monetary policy give an example of how they would use this policy to help fix the economy
Assume a hypothetical case where an industry begins as perfectly competitive and then becomes a monopoly. Which of the following statements comparing the conditions in the industry under both market structures is true?
an estimate of the demand function for household furniture produced the following resultsf 0.0036y 1.08r0.16 p 0.48
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