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1) Provide an example of a decision or choice that a college student may make which involves utility maximizing behavior and choices using Total Utility.
2) Provide another example that a college student may make which focuses on maximizing marginal utility. This relates to utility of consuming one additional unit of a good or service.
Explain the elements of the estate tax formula. Describe the interplay between gift and estate taxes. Describe strategies to minimize estate taxes. Explain the generation-skipping transfer tax and its relationship to gift and estate taxes.
Suppose the entire civilian labor force is 20,000 people and the number of unemployed is 2,000 people.
Is the product considered elastic, inelastic or unitary elastic. In a few sentences Illustrate what effect does the present supply also present Demand have on this product.
Generate two (2) advantages and two (2) disadvantages of group decision making within the context of deciding how to spend revenue obtained from a new sales tax. Include at least two (2) examples of such advantages and disadvantages to support your p..
Assume that the substitution effect is large relative to the income effect. If a tax reform is designed to increase saving, what does it do to the interest rate and spending on capital goods?
Illustrate what was the growth rate of nominal GDP between 1996 also 1997. Why do economists use real GDP per capita to measure the economic progress.
The best way to do a sales analysis is to first break down sales by customer type, and then geographic region. Pricing objectives need not be explicitly stated. "Psychological pricing" involves setting prices which end in certain numbers, while "odd-..
The original cost of a certain asset is $1,180. It has to be replaced (at this cost) every 4 years; the salvage value is negligible. Annual revenues and expenses are expected to be $435 and $366, respectively, over an indefinite period of time. The i..
How can fiscal policy create jobs? Discuss Can the government make things worse by intervening in markets? Are there other options outside the markets and government that will fix macroeconomic failure? Discuss
Consider a monopolist who faces a market demand curve for her product given by QD = 200 − 5p. The firm can product its goods using one of two technologies. Using technology A, what will be the equilibrium in the market? Suppose the market is made up ..
A company has an investment project that will cost $2 million today and yield a payoff of $3 million in 5 years. If the interest rate is 9%, should the firm undertake the project?
Suppose the market demand function (expressed in dollars) for a normal product is P = 480 – 4q and the marginal cost of producing it is MC = 2q, where P is the price of the product and q is the quantity demanded or supplied. How much would be supplie..
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