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The current congress seems to be flexing a little more muscle way back in Washington D.C. than in the past. Is there more accountability or just more political posturing?
Internalising the externality with an efficient corrective tax per unit of production
Suppose that an individual with income I cares about two goods, X and Y. The price of the two goods is Px and Py. The individual has the following utility function:
A firm has estimated the following demand function for its product: Calculate the advertising elasticity of demand and explain its meaning.
Consider the market for two goods that are substitutes, such as pens and pencils. If a technological breakthrough reduced the cost of producing pens.
Compute the amount of each good in the consumer's optimal basket. Explain your steps. Assume that the government adds a tax of $1 to the price of luxuries. How does it affect the optimal consumption of the individual?
The net annual value added that can be attributed to this machine is constant over eight years and a mounts to $15,000. An effective income tax-rate of 40% is used by the company, and the before-tax MARR equals 25% per year. Use 150% Declining Bal..
The postwar U.S. economy data shows that the long-run annual growth rate of output is 3.2%, the long-run annual growth rate of money stock is 5.3%, and the nominal interest is 5.8 (a) Find the inflation rate using quantity theory of money. Assume tha..
In 1970 Milton Friedman argued that the only social responsibility of business was to increase profits. Compare and contrast the evidence Freidman presents to back up his claim with that provided in the Homer-Dixon article.
A general slowdown in economic activity is termed an economic recession. This is caused by fall in aggregate monetary demand What are the indicators of an economic recession?
You are considering the purchase of a three year corporate bond. The denomination is $1,000 and the market price is $970.00. The interest is paid monthly at $8.90.
Assume that the reserve requirement is 5%. All other things equal, will the money supply expand more if the Federal Reserve busy $2,000 worth of bonds or if someone deposits in a bank $2,000 that he had been hiding in his cookie jar? If one creates m..
the values below are in billions of dollars.c 800i 100g200im 150ex100a. what is output?b. if taxes t are 100 billion
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